From the trader's desk...
The red closes continued in today's session, this time with declines seen across board and the consumer goods sector leading the pack with a 155bps loss on the back of sell-offs in counters like NESTLE (-279bps), GUINNESS (-210bps), and HONYFLOUR (-164bps). Consequently, the All-Share index closed down by 20bps to settle at 47,156.56 points. Other counters that lost points were OANDO (-675bps), ETI (-336bps), and WAPCO (-125bps) canceling out gains recorded in FCMB (+794bps), UACN (+474bps), FIDELITYBK (+358bps), and PZ (+58bps). Meanwhile, activity level improved once again, with volume and turnover increasing by 42.10% and 45.87% to 303m units and ₦3.9 billion respectively. Finally, market sentiments worsened, contracting further to 0.55x, after 16 stocks closed green and 29 declined.
For a breakdown of stock performances, please see the pricelist.
What will shape the market tomorrow?
The five most traded names today were in the banking sector (ACCESS, UBA, FIDELITYBK, GTCO, and ZENITHBANK), all accounting for 57% of day's volume. This further signifies investors' appetite for stocks in the sector, which is driven by attractive dividend yields and strong valuations. We expect demand for names in this space to continue to dominate activity chart in tomorrow's session.
Stocks to Watch
On the bid Cart: With just 497,181 units traded in FCMB, the banking stock closed the day with a price appreciation of 7.94%, making it the second best performing stock today and improving YTD return to 22.74%.
On the Offer Cart: Following Monday's 8.07% price dip, CHAMPION closed the session once again on the top losers table, representing a 16.14% decline this week. The consumer goods counter has now lost 20.43% YTD.
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