Equity Market Report - 26 October, 2020
(Source: Vetiva Research, Date: 26-Oct-2020)
Daily Equity Market Report,
26th October, 2020
From the trader's desk...
Extending Friday's positive performance, the domestic bourse maintained its bullish performance, closing today's session up by 28bps to settle at 28,777.96 points. Today's upward movement resulted from gains in ZENITHBANK (+71bps), DANGCEM (+66bps) and GUARANTY (+66bps) among others, while reducing the impact of declines in NASCON (-839bps), DANGSUGAR (-72bps) and ACCESS (-65bps). Similarly, activity levels for the day traded upward, as the total volume and value traded increased by 20.61% and 25.63% respectively, with trades in GUARANTY, DANGCEM and ZENITHBANK accounting for 67.83% of total market turnover, following large crosses in the three counters. Likewise, investors' confidence as measured by the market closed in the green (1.80x), as a total of 27 stocks closed higher while 12 stocks closed below.
For a breakdown of stock performances, please see the pricelist.
What will shape the market tomorrow?
With a number of investors still taking advantage of the low prices of attractive counters in the equities space, coupled with the inflow of funds by local fund managers due to the unattractive yields in the fixed income market, the Nigerian equities market continue to trade in the green, as the YTD performance increased to +7.21%. Taking a cue from the positive sectoral performances, in conjunction with the positive market breadth, we anticipate another upward performance tomorrow, though the possibility of profit taking on recent gains cannot be overruled.
Stocks to Watch
On the Bid Cart: Extending its days of capital appreciation to three consecutive sessions, the domestic bourse again closed the day higher as bargain hunting activities in counters such as; ETI (+769bps), FLOURMILL (+522bps), PZ (+227bps), UBA (+213bps), UBN (+104bps), ZENITHBANK (+71bps), DANGCEM (+66bps), GUARANTY (+66bps), JBERGER (+60bps) and WAPCO (+56bps) among others led the market north.
On the Offer Cart: ACCESS emerged as the lone decliner amongst the Tier 1 banking stocks, after recording a loss of 65bps to close at ₦7.65. Today's downward movement resulted from profit taking action in the counter which emerged as one of the gainers on Friday. Following today's decline, its YTD performance worsened to -24.26% (ZENITHBANK: +13.10%; GUARANTY: +4.97%; UBA: 0.00%; FBNH: -6.15%).