Equity Market Report - 21 October, 2020
(Source: Vetiva Research, Date: 21-Oct-2020)
Daily Equity Market Report,
21st October, 2020
From the trader's desk...
With the rising cases of civil unrest in some states, investors reacted negatively in the equities market, leading to the ASI declining 75bps d/d to close at 28,449.49 points. Market opened on a bearish note and was down 145bps earlier in the session before investors came in to take advantage of the depressed prices, leading to a moderation in the loss. Counters such as WAPCO (-442bps), MTNN (-143bps), GUARANTY (-132bps) and ZENITHBANK (-119bps) among others all closed in the red. On the other hand, contrary to the downward slope recorded yesterday, activity levels for the day improved a bit, with the total volume and value traded rising 9.84% and 44.34% respectively, though most of the trades occurred at the lower bands. Investors' sentiment as measured by the market breadth settled deep in the red, closing at 0.12x as just 4 stocks advanced while 34 stocks closed lower.
For a breakdown of stock performances, please see the pricelist.
What will shape the market tomorrow?
With the declines recorded in other sectors eroding the 57bps rise in the Insurance sector, the Nigerian equities market closed the day lower, amidst the social unrest. Taking a cue from the bearish sectoral performances coupled with the negative market breadth, we see the market sustaining the bearish pattern tomorrow. However, we expect a rapid and coordinated response from the government to allay the fears of social unrest, thereby dousing some negative sentiments.
Stocks to Watch
On the Bid Cart: With a number of mid/large cap stocks plotting a downward slope today, the small cap stocks dominated the gainers table as counters such as; WAPIC (+10.00%), PORTPAINT (+250bps) and UAC-PROP (+123bps) emerged as the top advancers for the day while NB (+97bps) closed as the lone mid cap gainer.
On the Offer Cart: The domestic bourse witnessed a significant sell off today as a number of investors sold down stocks such as; ARDOVA (-630bps), ETI (-625bps), GUINNESS (-588bps), WAPCO (-442bps), UBA (-435bps), FBNH (-317bps), JBERGER (-317bps), MTNN (-143bps), GUARANTY (-132bps) and ZENITHBANK (-119bps).