Equity Market Report - 17 January, 2020

Equity Market Report - 17 January, 2020
(Source: Vetiva Research, Date: 17-Jan-2020)

Daily Equity Market Report,
17th January, 2020

From the trader's desk...

The market closed the last trading session of the week on a positive note, with the index advancing 91bps to close at 29,618.52points. Gains in UACN (+700bps), ACCESS (+435bps), ZENITHBANK (+229bps) among others lifted the index, as investors continue to cherry-pick stocks with strong fundamentals. Turnover was dominated by Tier-1 banking names, with ZENITHBANK (844m), UBA (584m), ACCESS (495m) and GUARANTY (414m) leading trades. Volume traded and market turnover in the session moderated day-on-day, whilst market breadth was negative, with 13 advancers and 16 laggards. Losses experienced in 2 sessions earlier in the week failed to drag the broader index, as the ASI closed the week up 69bps while YTD return closed at 10.34%.

For a breakdown of stock performances, please see the pricelist.

What will shape the market tomorrow?
The bourse closed the week in the green as bargain-hunting on Tier-1 banks persisted for a second straight session. We expect a slight moderation in market gains early next week, but believe that the positive macro outlook for 2020 could continue to support demand at current levels. Also, the low yield environment in the fixed income space is expected to support further interest from the institutional investors in the equities market.

Stocks to Watch
On the Bid Cart: UACN (+700bps) closed as one of the highest gainers today behind CORNERST (+741bps). The conglomerate has gained over 22% this year based on today's close of ₦10.70, however, it remains below its 2020 year-high price of ₦11.15. Last year, the company's board announced some restructuring plans for the company which spurred renewed investor interest.

On the Offer Cart: GOLDBREW (-899bps) was the worst performing stock in today's session and represents the first price movement on the stock in 52 weeks. The company continues the rebrand following the fire outbreak at its facility in 2003. With stiff competition in the brewery sector, we foresee continued revenue challenges and thin margins hampering the brewer's profits and thus, its share price.

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Equity Market Report - 17 January, 2020 (Source: Vetiva Research, Date: 17-Jan-2020)

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Equity Market Report - 17 January, 2020
(Source: Vetiva Research, Date: 17-Jan-2020)