Daily Equity Market Report,
25th February, 2021
From the trader's desk...
Declines in ETI (-631bps), ACCESS (-471bps), UBA (-409bps) and NB (-370bps) among others, pushed the domestic bourse back to the negative territory, as the ASI shed 31bps to close lower at 40,095.49 points. Similarly, the bearish sentiment reflected in activity levels for the day, as the total volume and value traded dipped 30.56% and 47.56% respectively to 326.04mn units and ₦3.71bn. While TRANSCORP, DANGSUGAR and UBA closed as the top traded stocks by volume, ZENITHBANK, DANGSUGAR and GUARANTY emerged as the top traded stocks by value. The equities market breadth also returned to the negative region, closing lower at 0.58x as 14 stocks advanced while a total of 24 stocks settled south.
For a breakdown of stock performances, please see the pricelist.
What will shape the market tomorrow?
With sentiment still tepid at the local bourse, the ASI could not hold on to yesterday's gain, riding south on the back of losses in the Banking (-1.33%), Oil & Gas (-0.85%) and Consumer goods (-0.79%) sectors. Taking a cue from the available offers seen in the market today, we expect the market to extend today's bearish sentiment into tomorrow's session.
Stocks to Watch
On the Bid Cart: WEMABANK trailed ROYALEX (+800bps) and CHAMS (+909bps) as the third best performing stock for the day, recording a gain of 769bps to close the day at ₦0.70. In spite of its FY'20 results where its Gross Earnings and PAT declined by 14.79% and 2.66% respectively, investors took position in the Tier 2 Banking stock today, thereby improving its YTD return to +1.45% (vs -5.80% recorded yesterday).
On the Offer Cart: Following two consecutive sessions of closing in the green due to its impressive FY'20 results as well as its improved dividend pay out (from ₦2.50 to ₦2.70), ZENITHBANK lost part of its earlier gains as the Banking stock depressed by 171bps to close at ₦25.85. The ticker was largely affected by profit taking, as its YTD performance moderated to +4.23%.
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