Equity Market Report - 10 August, 2020
(Source: Vetiva Research, Date: 10-Aug-2020)
Daily Equity Market Report,
10th August, 2020
From the trader's desk...
The domestic bourse could not extend last week's bullish performance into the new week, as the first trading session of the week ended marginally down by 6bps to close at 25,027.61 points. The downward movement came on the back of declines in UBA (-153bps), BUACEMENT (-139bps) and ZENITHBANK (-59bps), which mitigated the impact of gains in UNILEVER (+714bps), WAPCO (+213bps) and GUARANTY (+82bps) among others. Activity level for the day however closed mixed, with total volume rising marginally by 4.97% while total value traded declined by 28.92%, even though trades in GUARANTY, UNILEVER and MTNN accounted for about 47.69% of total market turnover. However, market breadth remained at the positive side, closing at 1.64x as 18 stocks closed higher while 11 settled south.
For a breakdown of stock performances, please see the pricelist.
What will shape the market tomorrow?
Void of any significant positive catalyst that is capable of sustaining the bullish momentum recorded last week, the Nigerian equities market returned to the negative side riding on the back of declines in the Industrial goods (-41bps) and Banking (-4bps) sectors. With a number of bellwether stocks having released their results already (except for some major Tier 1 Banking stocks), we expect the bargain hunting driven by earnings results to lessen in the coming sessions.
Stocks to Watch
On the Bid Cart: UNILEVER closed as the second best performing stock for the day, advancing 714bps to close higher at ₦12.00. The impressive performance was supported by a large volume trade, as about 17.20mn units were traded in today's session with most of the trades going through at higher bands (avg: ₦12.00). With the positive figure posted today, its YTD performance moderated to -42.03%.
On the Offer Cart: ETI closed as one of the top decliners for the day, diminishing by 471bps to settle at ₦4.05. Just like other counters at the domestic market, the counter has been significantly pressured this year, posting a YTD loss of -38.17% while also trading at a 55.00% discount to its 52 week high price of ₦9.00.