Equity Market Report - 15th December, 2020
(Source: Vetiva Research, Date: 15-Dec-2020)
Daily Equity Market Report,
15th December, 2020
From the trader's desk...
With the gains recorded in WAPCO (+714bps), ZENITHBANK (+398bps), DANGCEM (+372bps) and GUARANTY (+167bps) among others pushing the ASI upward, the domestic bourse maintained yesterday's positive performance, as the index increased by 110bps to close at 35,225.22 points. However, as against the outright downward slope plotted yesterday, activity levels in today's session closed mixed, as the total volume traded advanced by 26.99% while the total turnover again slipped 20.36%, though DANGCEM, ZENITHBANK and DANGSUGAR emerged as the most traded stocks by value, contributing about 51.00% of the total turnover. Still in the positive region, market breadth increased further to 2.07x (vs 1.86x recorded yesterday), as a total of 29 stocks settled higher while 14 stocks closed south.
For a breakdown of stock performances, please see the pricelist.
What will shape the market tomorrow?
With the prices of most fundamentally sound stocks still at attractive levels, savvy investors cherry picked some counters across sectors, leading to all sectors closing the day in the green, save for the Consumer goods sector which declined 9bps due to the 309bps loss in INTBREW. Barring any significant selloffs in large cap stocks tomorrow, we expect today's bullish performance to filter into tomorrow's session.
Stocks to Watch
On the Bid Cart: Since posting a significant loss in the previous week, DANGCEM has been positively patronized in the last two sessions, closing the day up by 372bps to settle at ₦195.00. The largest capitalized stock on the NSE which lost about 9.00% last week has now gained 6.56% WTD, while also improving its YTD performance to +37.32% (BUACEMENT: +57.14% YTD; WAPCO: +63.04% YTD).
On the Offer Cart: INTBREW extended yesterday's bearish performance into today's session, posting another loss of 309bps while ending the day lower at ₦6.27. Just like the other Brewers, the counter has seen significant drop in price this years, as the sector remains one of the most affected sector by the impact of the Coronavirus pandemic which halted social activities in the country for a while during the year. As a result of the aforementioned factor, the ticker has lost 34.00% YTD (CHAMPION: -5.26% YTD; GUINNESS: -40.10% YTD; NB: -6.78% YTD).