Daily Equity Market Report,
23rd February, 2021
From the trader's desk...
With gains in FLOURMILL (+616bps), ZENITHBANK (+484bps), UBA (+119bps) and GUARANTY (+82bps) mitigating the effect of losses in NB (-847bps), DANGSUGAR (-270bps) and PZ (-93bps), the ASI closed the day marginally up by 3bps to settle at 40,164.86 points. Similarly, market activity for the day saw an improvement as the total volume and value traded increased by 16.80% and 7.59% respectively, while ZENITHBANK, GUARANTY and FBNH emerged as the top traded stocks by value. However, the equities market breadth dipped further to 0.67x (vs 0.80x recorded yesterday), as 16 stocks closed higher while 24 stocks closed in the red.
For a breakdown of stock performances, please see the pricelist.
What will shape the market tomorrow?
The domestic bourse returned to the positive territory today, thanks to the capital appreciation in the Banking (+1.68%) sector which reduced the impact of losses in the Consumer goods (-1.61%) and Insurance (-92bps) sectors. We expect the market in the next few sessions to be largely directed by the release of more earning results of major dividend paying stocks.
Stocks to Watch
On the Bid Cart: Following the release of its FY'20 results where its Revenue and PAT increased by 5.16% and 10.40% respectively, while also declaring a final dividend of ₦2.70, investors scrambled for position in ZENITHBANK, thereby pushing the counter up by 484bps d/d to close at ₦26.00. Given that its dividend yield is still above 10.00%, we expect a similar upward pattern in the Banking stock tomorrow.
On the Offer Cart: NB closed as one of the worst performing stock for the day, declining 847bps d/d to close lower at ₦54.00. The counter has been pressured in recent times, trading about 15% below its year high price of ₦63.00, while also printing a YTD loss of -3.57%.
Equity Dealing Desk
Vetiva Securities Limited
Plot 266B, Kofo Abayomi Street
P. O. Box 73530 Victoria Island
Tel: +234-1-4617521-3, 2700657-8; Fax: +234-1-4617524.