Equity Market Report - 30 September, 2020
(Source: Vetiva Research, Date: 30-Sep-2020)
Daily Equity Market Report,
30th September, 2020
From the trader's desk...
Supported by the consistent buying interest in counters such as TOTAL (+10.00%), GUARANTY (+370bps), DANGCEM (+281bps) and MTNN (+118bps) among others, the Nigerian equities market maintained its upward movement, rising 85bps to close at 26,837.42 points. Similarly, the month of September was filled with bargain hunting activities, as the ASI advanced 5.96% MoM while the YTD performance moderated to -0.02%. However, compared to the 413.10mn units and ₦4.53bn traded yesterday, total volume and value traded for the day slipped 21.87% and 10.80% respectively, printing 322.76mn units and ₦4.04bn, while trades in DANGCEM, MTNN and ZENITHBANK accounted for 53.89% of total turnover for the day. Plotting a similar pattern as witnessed in the last few sessions, the equities market breadth remained positive, closing at 2.50x with 20 stocks settling in the green while 8 stocks closed south.
For a breakdown of stock performances, please see the pricelist.
What will shape the market tomorrow?
The recent bullish momentum in the equities space can be attributed to the stability seen in the Crude oil market, coupled with the recent decision of the MPC to reduced the benchmark rate (MPR) by 100bps to 11.50%, driving buying interest in most fundamentally attractive stocks. Though, a number of stocks remain below their fair values, however, investors are advised to trade cautiously in the short term as the domestic market remains soft in the face of global and local uncertainties.
Stocks to Watch
On the Bid Cart: Amongst other gainers for the day, TOTAL topped the gainers table, advancing 10.00% to close at its intra-day maximum price of ₦96.80. The positive performance can be linked to the overall positive sentiment in the equities market as investors continue to channel their funds in fundamentally attractive counter. Following today's gain, its YTD performance moderated to -12.71%.
On the Offer Cart: Following the consecutive sessions of capital appreciation, NB closed amongst the decliners for the day, shedding 676bps to close at ₦49.00. Today's downward movement can be attributed to profit taking in the counter, as short term players take advantage of recent gains. With today's loss, its YTD performance worsened to -16.95%.