Daily Market Summary: Market breadth closes at 0.52x
- Negative momentum declined in the session as the NSEASI-0.12% shed less points as against -0.84% recorded at the close of trades yesterday. Accordingly, the market breadth depicted an improvement in market sentiments, despite its negative close at 0.52x.
- A total of 203.36 million (-7.05%) shares worth NGN4.43 billion (+98.47%), were exchanged in 4,090 (-0.46%) deals. YtD return on the bourse declined to 6.24%.
- SOVRENINS+5.00% which closed at NGN0.21, was the top gainer for the day, following a flat close of NGN0.20 in three consecutive sessions.
- In contrast, negative sentiments were sustained on DIAMONDBNK-9.39% which has shed 20.00% since the 7th of May, 2018.
- All NSE sector indices closed positive, save for the NSE Banking sector index which shed 135bps in the session. ETI which advanced by 145bps was the only gainer in the banking sector.
Why stocks are down
- Based on our analysis of today’s trades, we note that the anticipated return of gains on the NSEASI was stifled by the sustained price shedding on counters in the banking sector (DIAMONDBNK-9.39%,FBNH-4.17%, ZENITHBANK-4.00%).
- In the near term, we expect the influx of bargain hunting activities on fundamentally justified stocks in the banking space.
Consumer Goods Sector: Bellwethers regain positive momentum
The sector was liberated by the bullish close on its large cap counters; NESTLE+2.81% and NB+2.30%.
Mixed sentiments caused other stocks to trade flat, with the exception of CHAMPION-3.37%, DANGFLOUR-2.17%, CADBURY-0.76% and FLOURMILL-0.43% which closed in the red.
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