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Equity Market Report - 16 October, 2020
(Source: Vetiva Research, Date: 16-Oct-2020)
Daily Equity Market Report,
16th October, 2020


From the trader's desk...
Following consecutive sessions of sideways trading, the domestic bourse returned to the positive region, ending the last trading session of the week up by
111bps to close at 28,659.45 points. The upward movement resulted from bargain hunting activities in a number of mid/large cap stocks such as TOTAL (+10.00), PRESCO (+893bps) and ZENITHBANK (+775bps) among others. However, as against the upward movement recorded yesterday, activity levels for the day closed mixed with the total volume traded increasing significantly by 42.93%, while the total turnover slipped 6.34%. Also, with the positive performance recorded today offsetting the decline recorded earlier in the week, the WTD performance closed positive at 0.86% while the YTD return settled at +6.77%. Similarly, the domestic bourse saw a bullish sectoral performance for the week, with four of the five major sectors closing in the green, led by the Banking sector which advanced 2.89% WoW, while the Insurance sector closed as the lone decliner (down by 0.68% WoW).                                                    
  
For a breakdown of stock performances, please see the pricelist.



What will shape the market tomorrow?
The domestic bourse was characterized by mixed trading activities during the week, with profit taking action recorded at the beginning of the week, while barging hunting cripped in at the weekend. With the fear of the second wave of the Coronavirus pandemic dampening investors' sentiment across the world, we advice a cautious trading strategy for short term players in the near term, while mid/long term investors can still take advantage of the current attractive price levels. Also, as the Q3 earnings begin to come into the market from next week, we believe this should shape market direction in the coming week.                                    
                              
Stocks to Watch
On the Bid Cart: The Bulls dominated the trading session for the day, taking position in a number of mid/large cap stocks such as TOTAL
(+10.00%), INTBREW (+990bps), PRESCO (+893bps), UBA (+827bps), ZENITHBANK (+775bps), ETI (+581bps), GUINNESS (+531bps), WAPCO (+443bps), FBNH (+323bps), GUARANTY (+288bps), FLOURMILL (+261bps), ACCESS (+258bps) and STANBIC (+118bps) among others.                                                        



On the Offer Cart: After days of trading in an upward direction, ETERNA trailed CHIPLC (+811bps), ETRANZACT (+942bps) and CUTIX (-10.00%) as one of the decliners, shedding 737bps to close the week at ₦4.90. The downward movement resulted from profit taking action in the counter which had gained over 80.00% in the last few weeks. However, despite today's decline, the counter's YTD return remained positive at 36.11%.  
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