Domestic Equities sustain Bearish run… ASI Down 1.9%

Sell pressures in bellwether stocks AIRTELAFRI (-10.0%), MTNN (-2.3%) and NESTLE (-4.8%) dragged the benchmark index 186bps lower to settle at 28,712.90 points while the YTD return worsened to -8.6%. Accordingly, investors lost N170.9bn in value as market capitalisation fell to N13.9tn. Activity level declined as volume and value traded dipped 0.2% and 14.6% to 188.4m units and N3.2bn respectively. The top traded stocks by volume were FBNH (50.1m units), ZENITH (21.1m units) and ACCESS (18.9m units) while MTNN (N724.9m), ZENITH (N404.3m) and GUARANTY (N380.7m) led the top trades by value.

Performance across sectors was largely bearish as 4 of 6 indices under our coverage closed in the red. The Insurance index shed the most, down 2.7%, due to sell pressures in MANSARD (-10.0%), CHIPLC (-9.1%) and AIICO (-1.5%). The Consumer Goods index trailed, declining 2.1%, following losses in NESTLE (-4.8%) and HONEYFLOUR (-2.9%). Similarly, sell-offs in CCNN (-9.8%) and DANGCEM (-0.3%) dragged the Industrial Goods index by 1.7% while  price depreciation in AIRTELAFRI (-10.0%) and MTNN (-2.3%) weighed on the AFRI-ICT index. Conversely, price appreciation in GUARANTY (+3.3%), ETI (+0.5%) and FIDELITY (+0.6%) as well as CONOIL (+0.3%) buoyed a 64bps and 1bp increase in the Banking and Oil & Gas indices respectively.

Investor sentiment as measured by market breadth (advance/decline ratio) weakened to 0.6x from 0.9x recorded the previous day as 10 stocks advanced relative to 18 stocks that declined. The top outperforming stocks were SOVERNINS (+4.8%), COURTVILLE (+4.5%) and GUARANTY (+3.3%), while MANSARD (-10.0%), AIRTELAFRI (-10.0%) and CCNN (-9.8%) led the decliners. While we expect the downward trend to continue in the near term, it presents opportunities to position in premium stocks.

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