Equity Market Report - 30 November, 2020
(Source: Vetiva Research, Date: 30-Nov-2020)
Daily Equity Market Report,
30th November, 2020
From the trader's desk...
Though the index traded in the red in the early hours of today's session (-34bps) due to declines in counters such as GUARANTY (-514bps), ZENITHBANK (-184bps) and BUACEMENT (-179bps) among others. However, gains in the telecommunication giants AIRTELAFRI (+10.00%) and MTNN (+13bps) ensured a positive close, as the ASI again advanced 45bps to close at 35,042.14 points. Similarly, activity levels saw a significant improvement compared to previous session, as the total volume and value traded increased by 118.39% and 47.05% respectively while ZENITHBANK, AIRTELAFRI and MTNN emerged as the most traded stocks by value, accounting for 46.00% of the total turnover for the day. However, though the index closed the day higher, investors' sentiment as indicated by the market breadth closed negative at 0.55x with 16 stocks settling higher against 29 which closed lower. On the other hand, with the Bulls dominating most of the trading sessions in the month of November, the domestic bourse increased by 14.78% MoM, while the YTD return increased further to +30.55%.
For a breakdown of stock performances, please see the pricelist.
What will shape the market tomorrow?
Trading session for the day was largely dominated by profit takers, as a number of investors took advantage of some of the gains made in the previous week, thereby closing the Banking (-249bps), Industrial goods (-68bps) and Consumer goods (-44bps) indices south. We expect another mixed play in tomorrow's session as savvy investors continue to look for alpha returns in fundamentally sound stocks, while profit takers continue to take advantage of gains recorded in the local bourse.
Stocks to Watch
On the Bid Cart: The domestic market was largely saved by the significant upward movement in AIRTELAFRI (+10.00%), supported by the 13bps rise in the share price of MTNN. The two telecommunication stocks have been positively patronized in recent times, posting a YTD returns of 96.89% and 42.39% respectively, while still showing room for upward movement.
On the Offer Cart: Despite the domestic market extending last week's bullish performance into today's session, the Bears dominated most of today's session as declines were recorded in counters such as; UNILEVER (-582bps), UCAP (-566bps), GUARANTY (-514bps), PZ (-291bps), FBNH (-270bps), ETI (-233bps), ZENITHBANK (-184bps), BUACEMENT (-179bps), DANGSUGAR (-150bps), UACN (-131bps), UBA (-119bps), ARDOVA (-109bps), FLOURMILL (-54bps) and GUINNESS (-53bps).