Equity Market Report - 22 September, 2020
(Source: Vetiva Research, Date: 22-Sep-2020)
Daily Equity Market Report,
22nd September, 2020
From the trader's desk...
The domestic bourse ended today's session in the green, thanks to the late capital appreciation in MTNN (+241bps), coupled with buying interest in FBNH (+204bps) and DANGSUGAR (+83bps) which mitigated the impact of declines in PRESCO (-80bps), ACCESS (-78bps) and DANGCEM (-22bps). Similarly, compared to the downward slope plotted by the activity levels in the last few sessions, transaction sizes at the local market improved today, with total volume and value traded increasing significantly by 33.62% and 154.62% respectively, while trades in MTNN, ZENITHBANK and PRESCO accounted for 67.90% of total market turnover. However, the positive performance of the ASI was not broad based, as a total of 9 stocks closed higher against 17 stocks which settled south (market breadth: 0.53x).
For a breakdown of stock performances, please see the pricelist.
What will shape the market tomorrow?
Though the ASI ended today's session in the green (thanks to the gain in MTNN), however, the positive performance didn't filter across board as the market breadth remained in the red (suggesting a weak investors' confidence). Given the concerns about the rising cases of the Coronavirus pandemic and its impact on global economies, we expect the market to remain soft in the near term, hence, we continue to recommend a cautious trading strategy in the short term.
Stocks to Watch
On the Bid Cart: MTNN closed today's session as one of the gainers, rising 241bps to end the day higher at ₦123.00. After several failed attempts in the last few months to sustain its price above the ₦120.00 resistance level, the counter broke free today after about 13.28mn units of shares were traded above the ₦120.00 resistance level. Following today's gain, its YTD performance improved to 12.84%.
On the Offer Cart: UBN emerged as the worst performing stock for the say, declining 654bps to close lower at ₦5.00. Just like the other banking stocks, UBN has been pressured so far in the year, trading 34.21% below its 52 week high price of ₦7.60, while also posting a YTD loss of -17.36%.