Equity Market Report - 03 December, 2020
(Source: Vetiva Research, Date: 03-Dec-2020)
Daily Equity Market Report,
3rd December, 2020
From the trader's desk...
Despite gains in ARDOVA (+769bps) and MTNN (+77bps), the domestic bourse couldn't reverse yesterday's loss, shedding 25bps to close lower at 34,968.94 points. The index again closed south due to declines in ZENITHBANK (-187bps), FLOURMILL (-185bps) and GUARANTY (-147bps) among others. However, activity levels for the day closed mixed, with the total volume traded down by 21.57% while the total turnover for the day advanced by 33.82%, thanks to trades in MTNN, ZENITHBANK and NESTLE which contributed about 75.00% to the total turnover for the day. Still on a downward slope, the market breadth worsened from the 0.86x recorded yesterday to 0.52x in today's session, as 13 stocks closed in the green while 25 stocks closed in the red.
For a breakdown of stock performances, please see the pricelist.
What will shape the market tomorrow?
Trading session for the day was again controlled by the Bears, evidenced by the negative sectoral performances (Banking: -2.07%; Insurance: -0.82%; Consumer goods: -0.20%), coupled with the negative market breadth (0.52x). With the declines recorded in the last few sessions, we expect investors' to start taking position in some fundamentally sound stocks in the next few sessions amidst low and attractive prices.
Stocks to Watch
On the Bid Cart: Following the negative performance witnessed at the beginning of the week, MTNN returned to the positive region, up by 77bps in today's session to close at ₦156.20. Similarly, the counter closed as the top traded stock by value, as a total trade of about 27.5mn went through at an avg price of ₦159.76. As a result of today's gain, its YTD return increased to +43.30%.
On the Offer Cart: Extending yesterday's bearish performance, the Banking sector closed as the worst performing sector for the day, printing a decline of 2.07% while its YTD performance reduced to +9.68%. The sector was largely affected by price depreciation in tickers like; ETI (-635bps), UBA (-520bps), ZENITHBANK (-187bps), GUARANTY (-147bps), FBNH (-137bps) and ACCESS (-115bps). With the declines recorded in the last few sessions, we expect investors' to start taking up positions in fundamentally sound stocks in that sector amidst improved dividend yields.