Domestic Equities Market: Bearish Outing on the Bourse… ASI down 2.3%

An Extraction of the Afrinvest Weekly Economic & Market Report for July 26th, 2024

Photo Credit: NGX

This week, bears dominated three of the five trading sessions, culminating in a 2.3% decline in the NGX-ASI to 98,201.49 points. Consequently, market capitalisation fell 2.3% w/w to ₦55.6tn, while YTD return decreased to 31.3% (previously 34.5%). However, activity level improved as both average volume and value traded rose 42.7% and 13.4% w/w to 711.4m units and ₦9.4bn, respectively. The volume chart was led by FCMB (172.8m units), ACCESSCORP (127.7m units), and ZENITH (120.9m units) while in terms of value traded, ZENITH (₦4.4bn), UCAP (₦2.9bn), and GTCO (₦2.7bn) topped the chart.

Performance across our coverage sectors was negative as all six indices lost. Leading the laggards, the Industrial Goods and Banking indices sunk 5.9% and 2.9% w/w, respectively, weighed down by losses in CUTIX (-14.0%), DANGCEM (-10.0%), UBA (-7.9%), and FBNH (-4.8%). Similarly, selloffs in DANGUSUGA (-7.3%), HONYFLOU (-6.3%), ETERNA (-10.0%), and JAPAULGO (-2.6%) pushed the Consumer Goods and Oil & Gas indices down by 0.7% and 0.5% w/w. Lastly, the Insurance and AFR-ICT indices shed 27bps and 1bp w/w, sequentially, due to selloffs in MANSARD (-7.7%), VERITASK (-7.5%), OMATEK (-14.9%), and CWG (-3.7%).

Investor sentiment, as measured by market breadth, worsened to -0.3x (previously 0.0x) as 20 stocks gained, 45 lost and 85 closed flat. SOVRENIN (+14.3%), WAPIC (+13.2%), and NEIMETH (+12.6%) were the top-performing stocks for the week while NSLTECH (-26.3%), OMATEK (-14.9%), and CUTIX (-14.0%) were the worst-performing stocks. Next week, we anticipate a negative outing on the bourse on the back of weak investor sentiment.

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