STOCKS HIT NEW LOWS AS THICKENING POLITICAL CLIMATE PERSISTS
After losing over 50% of the gains recorded in 2017, stocks in the Nigerian equity market have reached their 52-week low presenting attractive entry opportunities for bargain hunters.
As a result, the All Share Index declined by 0.4% to settle at 32,201.98 points even as the Market Breadth closed at 0.78x with 18 gainers and 23 losers. Furthermore, the volume and value of deals dipped by 36.1% and 54.5% respectively.
On a sectoral basis, we observed that three out of the five sector Indices closed in the red. The NSE Oil & Gas was the only gainer advancing by 0.3% largely driven by gains in Forte Oil (8.6%) and Japaul Oil and Maritime Services (4.4%).
On the other hand, the NSE Consumer Goods Index declined the most by 0.8% following sell-off in Champion Breweries (-10.0%) and Nigerian Breweries (-0.5%). Coming after was the NSE Banking and the NSE Insurance Index both depreciating by 0.6% due to price decline in Unity Bank (-8.6%), Wema Bank (-5.0%) and Royal Exchange Assurance (-8.7%), Standard Alliance Insurance (-8.0%) respectively.
Furthermore, the NSE Industrial Index closed flattish (0.0%).
The most actively traded stock in terms of volume was Access Bank with 24million units of shares worth c.185Million.
The gainers chart was led by C&I Leasing advancing by 8.6% to close at ₦3.15 from ₦2.90 while Champion Breweries was the biggest loser declining by 10.0% to close at ₦1.62 from ₦1.80.
We expect a mild uptick at the subsequent trading session as bargain hunters might likely buy into the dips as current valuations are attractive.