Daily Equity Market Report,
12th March, 2021
From the trader's desk...
Maintaining yesterday's bearish pattern, the Nigerian equities market ended the last trading session of the week down by 13bps to close at 38,648.48 points. The index's loss which was as high as 54bps earlier in the day, moderated to -13bps after the largest capitalized stock (DANGCEM) moved from the low price of ₦215.00 (-227bps d/d) to close the day flat at ₦220.00. However, losses in JBERGER (-395bps), MTNN (-125bps) and GUARANTY (-65bps) forced today's negative close. Volume and value traded improved from 168.87mn units and ₦2.12bn recorded yesterday, by 73.43% and 77.86% respectively marking a significant boost in activity levels. However, the domestic bourse increased its bearish weekly run to six consecutive weeks, declining 1.74% WoW while the YTD performance worsened to -4.03%.
For a breakdown of stock performances, please see the pricelist.
What will shape the market tomorrow?
With the Bears still dominating most of the trading sessions in recent times, the ASI again slipped WoW as losses in the Banking (-5.75% WoW) and Industrial goods (-0.05% WoW) sectors led the index south. Given the current price levels of most fundamentally sound stocks, we expect a bit of stability in the coming week spurred by bargain hunting on cheap valuations.
Stocks to Watch
On the Bid Cart: FLOURMILL ended the last trading session of the week as the best performing stock, posting a gain of 10.00% to close at its highest possible intra-day price of ₦29.70 (Avg price: ₦29.62). Similarly, the Consumer goods counter traded a little above 2mn units, with most of the trades occurring at the bid side. Following today's gain, FLOURMILL's YTD performance increased to +14.23%.
On the Offer Cart: WEMABANK closed as one of the highest decliners for the day, shedding 615bps to close at ₦0.61. The negative performance of the Tier 2 Banking stock resulted from profit taking in the counter which had been positively patronized in recent sessions. As a result of today's loss, its YTD performance worsened to -11.59%.
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