SELL PRESSURE PERSIST AS VOLATILITY REMAINS ELEVATED

SELL PRESSURE PERSIST AS VOLATILITY REMAINS ELEVATED

Monday’s trading session started on a negative note as equities pared gains realized at the previous trading session.

Consequently, the All Share Index declined by 0.3% to settle at 32,451.27 points even as the Market Breadth closed at 0.57x with 13 gainers and 23 losers. Furthermore, the volume and value of deals dipped by 63.5% and 68.8% respectively.

Looking closely at sector performance, we observed that the performance took a bearish tilt as only two sectors closed in the green. The NSE Banking Index advanced the most appreciating by 0.2% driven by buying interest in FCMB (2.3%), Guaranty Trust Bank (1.6%) and UBA (1.3%). Followed closely was the NSE Insurance Index increasing by 0.1% on the back of gains in Niger Insurance (9.7%) and Lasaco Assurance (6.5%).

The laggards were led by the NSE Oil & Gas Index declining by 0.8% on the back of losses in Japaul Oil (-6.7%) and Oando (-2.9%). Coming after was the NSE Industrial Goods Index shedding 0.7% due price decline in CAP (-4.1%) and Wapco (-2.1%).

In addition, the NSE Consumer Goods Index declined by 0.6% following losses in Dangote Flour Mills (-3.4%) and Nigerian Breweries (-3.2%).

Guaranty Trust Bank was the most actively traded stock in terms of volume with 67million units of shares worth c.2.3Trillion.

Niger Insurance led the gainers chart appreciating by 9.7% to close at ₦0.34 from ₦0.31 while Livestock Feeds was the biggest loser declining by 9.5% to close at ₦0.57 from ₦0.63.

At the next trading session, we expect the volatility to persist as sell pressure on bellwether stocks increases.

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