Daily Equity Market Report,
5th March, 2021
From the trader's desk...
In spite of the significant upward movement in WAPCO (+990bps) coupled with gains in DANGSUGAR (+242bps) and JBERGER (+53bps), the ASI remained negative as losses in ARDOVA (-785bps), SEPLAT (-739bps), GUARANTY (-159bps) and NB (-100bps) led the market south. As a result, the ASI declined 8bps to close the week at 39,331.61 points. However, with the significant cross deal in SEPLAT which contributed about 75% to the total turnover for the day, total value traded increased significantly by 188.31% to ₦13.62bn, while the total volume traded also increased by 19.20%. With losses recorded in four of the five trading periods for the week, the ASI maintained its weekly downward slope, posting a loss of 1.18% WoW while the YTD performance worsened to -2.33%. Similarly, with the Bears dictating the direction of the market, sectoral performance remained bearish, as all sectors closed in the red (led by the Consumer goods sector which lost 6.30% WoW), while the Industrial goods sector closed as the lone gainer, posting a gain of 1.39% WoW.
For a breakdown of stock performances, please see the pricelist.
What will shape the market tomorrow?
The domestic market maintained its weekly bearish run despite the significant boost in prices of global Crude Oil, coupled with the attractive dividend yields of a number of dividend-paying stocks. However, we expect the low prices of major bellwether stocks coupled with attractive dividend yields to fuel some buying interest in the coming week.
Stocks to Watch
On the Bid Cart: WAPCO maintained yesterday's impressive performance, to end the day at its intra-day maximum price of ₦9.90. With the sell pressure recorded in recent times, savvy investors took advantage of its cheap valuation, thereby closing the Industrial goods stock up by 990bps d/d. Following today's gain, its YTD return improved to +5.45%.
On the Offer Cart: The Oil & Gas sector ended the day as the worst performing sector, posting a loss of 5.31% d/d. The sector was largely affected by the significant declines recorded in OANDO (-862bps), ARDOVA (-785bps) and SEPLAT (-739bps). However, regardless of today's loss, the sector's YTD performance remained positive, closing the week at +14.79%.
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.