Equity Market Report - 10 July, 2020
(Source: Vetiva Research, Date: 10-Jul-2020)
Daily Equity Market Report,
10th July, 2020
From the trader's desk...
The Nigerian equities market recovered from yesterday's bearish performance, as gains in ETI (+105bps), MTNN (+96bps) and DANGSUGAR (+87bps) among others ensured a positive close. The index rose marginally by 12bps to 24,306.36 points while the YTD performance moderated to -9.45%. Similarly, activity levels for the day again saw a downward movement as total volume and value traded dipped significantly by 31.45% and 63.58% respectively. Correspondingly, the domestic bourse again posted a negative WoW performance, with the WTD figure printing -0.12% as gains recorded in two of the five trading sessions were cut short by losses posted in the other sessions. Similarly, all sector indices closed the week south (with the Consumer goods sector: -3.96% WoW topping laggards), save for the Banking sector which rose 5.85% WoW (thanks to the buying interest in ZENITHBANK: +9.87% WoW and GUARANTY: +7.93% WoW).
For a breakdown of stock performances, please see the pricelist.
What will shape the market tomorrow?
The local market saw a mix of bargain hunting and profit taking during the week as the index traded range bound in most of the sessions. With the continued spread of the Corona virus pandemic across countries and its severe impact on major global and domestic indicators, we envisage a persistently pressured market in the meantime, despite the attractiveness of a number of fundamentally sound stocks hence, a cautious trading strategy is advised.
Stocks to Watch
On the Bid Cart: INTBREW trailed LIVESTOCK (+980bps) as the second best performing stock for the day, rising 694bps to close the week at ₦3.85. Investors took advantage of yesterday's significant decline (-886bps), taking position in the counter. Just like other Brewers, the stock has been significantly pressured during the year, posting a YTD loss of -59.47% (GUINNESS: -53.41% YTD; NB: -42.29% YTD).
On the Offer Cart: As expected following the consecutive sessions of capital appreciation, the Banking sector saw a trend reversal today, ending the session down by 68bps courtesy of profit taking in UBA (-234bps), GUARANTY (-132bps), FBNH (-95bps) and ZENITHBANK (-30bps).