From the trader's desk...
The equity market suffered a major setback today, closing down 108bps largely on the back of the price depreciation in BUACEMEMT (-10.00%), putting YTD return for the market at 3.82%. Other counters that contributed to the negative close were MAYBAKER (-998bps), ETERNA (-472bps), ETI (-281bps), and MTNN (-38bps) while investors bought up stocks in the banking sector - UBN (+991bps), ACCESS (+169bps), ZENITHBANK (+143bps), and GTCO (+97bps). Despite the minimal activity level, market recovered for the previous lows, as volume and turnover increased by 61% and 62% to 180m units and ₦1.48 billion respectively. Meanwhile, market breath closed slightly positive at 1.06x after 17 stocks rose and 16 declined.
For a breakdown of stock performances, please see the pricelist.
What will shape the market tomorrow?
The market was driven south due to profit taking in MTNN and sell-off in BUACEMENT, which eroded gains in the banking sector (141bps). We expect a tepid trading session with mixed sectoral performance as profit taking activities is likely to continue in the consumer goods sector given the recent uptrend in that space.
Stocks to Watch
On the bid Cart: UBN continues to improve its YTD return (14.02%), following the announcement of the proposed acquisition of about 89% of its issued share capital by Titan Bank. This will be the third straight session of positive performance for the banking stock.
On the Offer Cart: After trading flat at ₦74.50 since November 2nd, BUACEMENT started the week as the worst performing stock, closing limit down to settle at ₦67.05. The industrial goods company has lost 13.32% YTD, trailing the sector that has returned -2.15% YTD.
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