Proceedings in the equities market on Monday sustained its bearish run as the benchmark index dipped by 0.78% to 30,400.28 points, following sell-offs in heavyweight stocks.
Accordingly, the Month-to-Date increased to 3.28%.
Most sectoral indices – Consumer Goods (-2.29%), Banking (-0.94%), Oil & Gas (-0.73%), and Insurance (-0.29%) – closed negative. The notable stocks include Nestle (-1.69%), Zenith Bank (-1.84%), and FO (-2.53%), NEM (-10.00%). Meanwhile the Industrial Goods (+0.82%) index closed positive on account of the gain in WAPCO (+0.44%).
Market breadth was negative with 34 losers and 14 gainers, led by NEM and Diamond Bank (+10.00%) stocks respectively. Total volume moderated by 33.4% to 222.58 million units, valued at NGN3.34 billion, and exchanged in 3,746 deals.
We reiterate our negative outlook for the equities market in the short to medium term, amidst political concerns ahead of the 2019 elections, and the absence of a positive market trigger. However, positive macroeconomic fundamentals remain supportive of recovery in the long term.