Cement-giant giveth and the cement-giant taketh away   

8th January, 2021

Despite gains in TOTAL (+10.00%), SEPLAT (+10.00%) and ARDOVA (+973bps) among others, the Nigerian equity market ended the last trading session of the week in the red, declining 116bps due majorly to losses in DANGCEM (-813bps) and WAPCO (-45bps). The index which traded in the green in the early hours of today's session slipped to the negative region as a result of the significant drop in the price of DANGCEM at midday. On the other hand, there was an improvement in activity levels for the day, as trades in GUARANTY, ZENITHBANK and ACCESS elevated the total turnover by 45.00%, while the volume traded for the day also improved by 42.50%. Though the domestic bourse recorded gains in three of the five trading sessions of the week, the ASI however declined 0.37% WoW as losses recorded in the other two sessions eroded the gains made. Moreso, with the exception of the Industrial goods sector which lost 2.29% WoW, all other sectors ended the week higher, while the Oil & Gas sector posted the highest gain of +13.16% WoW.              


What will shape the market tomorrow? 

In spite of the dominance of the Bulls for most of the sessions during the week (evidenced by gains in three of the five trading sessions, and bullish sectroral performances), the index ended the week lower amidst significant declines in the Industrial goods sector. We expect a recovery in the coming week, as the current price drop in the Industrial goods sector is expected to drive some buying interest in that region. Also, we anticipate some more positive patronage in the Oil & Gas sector as we continue to see improvement in the prices of Crude oil.         

Reporting for EasyKobo on Friday, 08 January 2021 in Lagos, Nigeria

Source: Vetiva Capital Management Limited

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