Daily Equity Market Report,
8th March, 2021
From the trader's desk...
Following four consecutive sessions of closing in the red, the Nigerian equities market started the new week on a positive note, as the ASI advanced by 17bps d/d to close at 39,396.57 points. The index benefited from gains in ARDOVA (+10.00%), WAPCO (+766bps), ACCESS (+256bps) and UBA (+63bps), while mitigating the effect of losses in INTBREW (-180bps) and ZENITHBANK (-158bps). However, void of any significant cross deals as seen in SEPLAT in the previous session, activity levels took a major hit as the total volume and value traded declined by 49.42% and 76.83% respectively, while ZENITHBANK, STANBIC and FBNH emerged as the top traded stocks by value. Improving from the negative performances posted last week, market breadth closed positive at 1.79x as a total of 25 stocks settled higher, in contrast to 14 stocks which closed in the red.
For a breakdown of stock performances, please see the pricelist.
What will shape the market tomorrow?
With a number of bellwether stocks trading at cheap valuations, coupled with the attractive dividend yield of some dividend paying stocks, savvy investors cherry picked attractive counter across sectors, leading to a positive close in all sectors except for the Consumer goods sector which declined 0.06% d/d. Although, the ASI ended the day in the green, we believe the persistent rise of yields in the Fixed Income market would continue to pose a threat in the short term.
Stocks to Watch
On the Bid Cart: Recovering from the significant loss of 785bps posted on Friday, investors scrambled for position in ARDOVA today, with the Oil & Gas stock posting a gain of 10.00% to settle at its intra-day limit up price of ₦14.85. Due to today's gain, the counter's YTD return improved to +9.59% (vs -0.37% posted in the previous session).
On the Offer Cart: With a number of investors taking advantage of low prices of major mid cap stocks today, the small cap stocks were negatively patronized as counters such as MEYER (-10.00%), LIVESTOCK (-987bps), SCOA (-985bps), IKEJAHOTEL (-948bps), NEM (-688bps), FIDELITY (-609bps), UCAP (-438bps), ROYALEX (-400bps) and MANSARD (-100bps) dominated the laggards table.
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.
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