March 27, 2019/InvestmentOne Update

The Nigerian equities market closed the third trading session of the week in red, losing 0.67%.

Similarly, market breadth index was negative with 11 gainers against 19 losers. 

NEM (-5.53%) was the top loser today while UNIONDAC (+10.00%) led the gainers’ chart.   

ZENITHBANK (+1.38%) was the most actively traded stock with about 28million units of shares worth N607million. 

Sector Performance

·           NSE Banking Index: Closed down by 0.98%, following the losses in STANBIC (-5.15%), GUARANTY (-3.74%), WEMABANK (-2.67%) and FBNH (-2.42%). 

·           NSE Oil & Gas Index: Lost 0.84%, largely on the back of the sell-off in SEPLAT (-1.82%).  

·           NSE Consumer Goods Index: Shed 0.39%, due to the decline in NASCON (-4.21%), DANGFLOUR (-3.93%), PRESCO (-3.88%) and GUINNESS (-2.42%).  

·           NSE Industrial Index: Gained 0.03%, majorly driven by the advancement in CUTIX (+9.73%).

Market Insight A

The equities market closed down today following the losses across most sectors. Despite the recent sell-off in the equities market, we believe prices at current level presents decent entry opportunities for investors with medium to long term horizon. Furthermore, with the conclusion of the 2019 elections, we expect uncertainties associated with political risk to dwindle. This may improve investor sentiment towards the Nigerian equities market.