Equity Market Report - 14 July, 2020
(Source: Vetiva Research, Date: 14-Jul-2020)
Daily Equity Market Report,
14th July, 2020
From the trader's desk...
Extending yesterday's bearish performance, the Nigerian equities market continued on its downward slope, shedding 34bps to 24,117.40 points as losses in ZENITHBANK (-370bps) and GUARANTY (-318bps) among others again depressed the impact of gains in UNILEVER (+964bps) and BUACEMENT (+61bps). Similarly, void of large cross deals in any mid/large cap stocks like we saw yesterday, activity levels for the day slowed as total volume and value traded declined by 9.96% and 50.86% respectively. Also, investors' sentiment remained weak at the domestic market as the total decliners (15) again outnumbered the gainers (8), pushing the market breadth into the negative region at 0.53x from the 0.82x recorded yesterday.
For a breakdown of stock performances, please see the pricelist.
What will shape the market tomorrow?
Though there was an improvement in the sectoral performances for the day compared to yesterday, sentiment around the domestic bourse however remained weak (evidenced by the persistent negative market breadth). We expect no deviation from this trading pattern tomorrow, given the continual challenges in the global and domestic space. However, with the declines we've seen in recent times, the possibilities of bargain hunting cannot be overruled.
Stocks to Watch
On the Bid Cart: UNILEVER closed the session as the best performing stock, printing a gain of 964ps to close the session higher at ₦13.65. The consumer goods stock has been significantly challenged so far in the year, posting a YTD loss of -34.06% while trading at a 57.34% discount to its 52 week high price of ₦32.00.
On the Offer Cart: Following the bargain hunting witnessed in the Banking sector at the early part of last week, the sector has however seen a trend reversal as investors continued to take advantage of gains made. The sector once again closed as the worst performing sector for the day, down by 280bps, riding on the back of declines in ZENITHBANK (-370bps), GUARANTY (-318bps), ACCESS (-317bps), UBA (-242bps), FBNH (-192bps) and ETI (-105bps).