Nigeria Daily Market Report | Bearish Start to the Week… ASI down 8bps

Photo Credit: NGX

Domestic Equities: Bearish Start to the Week… ASI down 8bps

The domestic bourse resumed from the holiday on a bearish note as losses in MTNN (-2.7%), NB (-8.4%), and FBNH (-2.7%) dragged the NGX-ASI down by 8bps to 99,840.95 points. Resultantly, YTD return fell to 33.5% (previously: 33.6%), and market capitalisation lost 8bps (₦47.6bn to print at ₦56.5tn. However, activity level strengthened as volume and value traded rose by 334.9% and 233.0% to 1.4bn units and ₦16.5bn, respectively.

Mixed Sector Performance

Performance across sectors within our purview was mixed as two indices gained, three lost while the Industrial Goods index closed flat. The Banking and Oil & Gas indices advanced 0.5% and 0.1% respectively, following gains in FIDELITY (+8.5%), GTCO (+1.9%), and JAPAULGOLD (+1.6%). On the flip side, sell pressure on MTNN (-2.7%) and OMATEK (-3.1%) dragged the AFR-ICT index down 0.9%. Similarly, the Insurance and Consumer Goods indices shed 0.1% apiece on the back of losses in MANSARD (-4.4%), WAPIC (-5.7%), and NB (-8.4%).

Outlook

Investor sentiment, as measured by market breadth, improved to 0.33x from 0.19x as 40 stocks advanced, 15 declined, while 75 remained flat. Tomorrow, we expect the market to follow a similar trend in the absence of any major catalyst.

Corporate Action

Fidelity Bank Plc is set to launch its ₦127.1bn capital raise (of the ₦400.0bn total estimate required) through a combined offer of rights issue and public offer tomorrow, June 20, 2024. The bank aims to raise ₦97.5bn in fresh funds from its 10.0bn shares public offering and ₦29.6bn from rights issue, which offers 3.2bn shares in a 1 for 10 ratio scheme at ₦9.25 per share.