From the trader's desk...
The equity market recorded a third consecutive day of negative trading, as the All-Share index dipped by 32bps to close at 43,108.77 points. This time, losses predominantly in the Oil and gas (-164bps) and the Banking sector (-116bps) drove the index south, with counters such as MRS (-987bps), ETI (-857bps), SEPLAT (-363bps), GTCO (-157bps), and STERLNBANK (-67bps) all shedding points. These outweighed gains seen in the likes of HONYFLOUR (+976bps), UCAP (+155bps), AFRIPRUD (+79bps), and STANBIC (+66bps). Similar to yesterday's market activity, volume and value traded improved further by 9.43% and 12.54% to 266m units and ₦4.2 billion respectively, with trades in SEPLAT (₦1.18 billion worth) lifting the market. Finally, market breadth turned negative today, falling to 0.58x as the session ended with 14 advancers and 24 decliners.
For a breakdown of stock performances, please see the pricelist.
What will shape the market tomorrow?
With tomorrow being the last trading session of the week, we expect to see investors cherry-picking some attractive counters albeit cautiously, especially after the sell-offs reported today. Consequently, we foresee some buying activity to close out the week.
Stocks to Watch
On the bid Cart: HONYFLOUR recovered from yesterday's negative close, gaining 9.76% to close at ₦4.05. We saw investors go bullish on the consumer goods company, as it traded on full bid for most of the session, with total traded volume of about 52m units. Meanwhile, the stock has currently returned 238% YTD.
On the Offer Cart: MRS dropped 9.87% today to close the session at ₦13.70. The stock has now lost 0.36% YTD, trailing the oil and gas sector that has returned an impressive 61.34% YTD.
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