Yesterday, in line with our expectations, the domestic equities market opened the week lower as profit-taking across counters that had gained over the past two weeks weighed on market performance.
Consequently, the benchmark All Share Index (ASI) shed 4 4bps to settle at 3 9,306.4 7 points, while YTD loss worsened to 2.4%.
The bearish performance was driven mainly by losses in MTNN (-1.1%), GUARANTY (-1.7%), and BUACEMENT (-1.2%). Activity level improved in yesterday’s session, as volume and value traded rose 62.8% and 2 2.1% respectively to print at 357.5m units and N3.6bn.
Sector performance reflected the bearish bias of the session as four of the five sectors under our coverage closed southwards. Leading the laggards, the Industrial Goods index lost 0.7% as price declines in BUACEMENT (-1.2%) and WAPCO (-2.4%) weighed.
Similarly, the Banking (-0.6%) and Insurance (- 0.3%) indices closed in the red, following profit taking across counters like STANBIC (-2.2%), GUARANTY (-1.7%), and MANSARD (-3.3%). Rounding up the losers, sell pressures in DANGSUGAR (-0.8%) and GUINNESS (-1.7%) pushed the Consumer Goods index lower by 7bps.
The Oil & Gas index emerged as the lone gainer for the session, gaining 0.2%, on the back of upticks in ETERNA (-9.8%) and OANDO (-0.3%).
Interestingly, investor sentiment closed strongly at 1.6x despite the bearish performance.
We anticipate sustained profit-taking into the week as short-term traders book gains from the past 2-week bullish momentum. In addition, we think an uptick in the marginal rates at the bond auction could stoke further bearish sentiments.