Equity Market Report - 01 December, 2020
(Source: Vetiva Research, Date: 01-Dec-2020)
Daily Equity Market Report,
1st December, 2020
From the trader's desk...
Despite declines in UBA (-120bps), FLOURMILL (-90bps) and MTNN (+13bps), the domestic bourse started the new month on a positive note, gaining 30bps to close at 35,147.62 points. The upward movement resulted from gains in GUARANTY (+542bps), ZENITHBANK (+167bps) and SEPLAT (+40bps) among others, while the YTD return increased further to +30.94%. However, contrary to the improved activity levels recorded yesterday, transaction size reduced in today's session as the total volume and value traded dipped 25.86% and 30.53% respectively, while GUARANTY, SEPLAT and ACCESS closed as the top traded stocks by value. Still in the negative territory, market breadth once again closed in the red, settling at 0.76x courtesy of 16 gainers against 21 decliners.
For a breakdown of stock performances, please see the pricelist.
What will shape the market tomorrow?
With a number of buyers still taking advantage of the current price levels of most fundamentally sound stocks in the equity market, the domestic bourse again closed higher while three of the five major sectors closed in the green. Barring any adverse events capable of dampening investors' sentiment, we expect today's positive performance to filter into tomorrow's session.
Stocks to Watch
On the Bid Cart: GUARANTY ended today's session in the green, advancing 542bps to close at ₦35.00. The counter traded at its intra-day maximum price of ₦36.50 in the early hours of today's session, after about 12mn units were crossed upon market resumption. Following today's upward movement, its YTD performance improved further to +19.86% (ACCESS: -13.86%; FBNH: +10.77%; UBA: 13.89%; ZENITHBANK: +30.48%).
On the Offer Cart: As against the positive close recorded yesterday, MTNN shed 13bps today to close lower at ₦155.20. The negative performance can be largely attributed to profit taking in the counter, which had advanced significantly in the last few sessions. However, despite today's loss, the bellwether stock remained in the positive region YTD, positing a return of +42.20%.