NSE daily report: Profit taking in bellwether stocks push market 1.83% down

The bears finally saw the light of day on the Nigerian Stock Exchange, as the benchmark index suffered a significant loss for the first time since December 10th, 2020.

The Nigerian Stock Exchange All-Share Index (NSE ASI) lost 1.83% on Tuesday, dropping by 751.25 to close at 40,396.14 points. Investors lost N362.816 on the day, as the market capitalization also lost 1.83% to settle at N21.122 trillion.

The negative market performance can be attributed to profit taking in bellwether stocks like; Bua Cement Plc (BUACEMENT -5.88%), MTNN (-2.77%), ZENITHBANK (-4.28%), GUARANTY (-2.84%) amongst others.

Of the three highflyers we have been tracking since December 2020, only JAPAULGOLD continued on the upward trajectory. The oil services company, now turned gold mining and services company gained the maximum 8.82% possible to close at N0.74.

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The other two highflyers declined on Tuesday; FTNCOCOA lost the maximum 9.72% to close at N0.65, while BUACEMENT lost 5.88% to close at N80.00.

Activity Level

The activity level increased significantly; the volume of traded shares increased by 119.73%, while the value of shares traded increased by 263.56%.

The shares of TRANSCORP was the most traded by volume with 69.158 million shares valued at N64.815 exchanging hands. ZENITHBANK and FCMB were the second and third most traded by volume with 31.707 million and 26.593 million respectively.

ZENITHBANK was the most traded stock by value, with shares worth N788.333 million exchanging hands in 537 deals. NB and MTNN were the second and third most traded stocks by volume, with shares worth N606.483 million and N591.715 million respectively.

Performance of Indices

Only one index under our watch appreciated, while the other four declined;

1. Insurance Index advanced by 1.56%, following gains in NEM (+9.50%), CORNERST (+6.78%) and SOVRENINS (+9.09%)
2. Oil & Gas Index fell 0.03% mostly as a result of loss in OANDO (-10.00%)
3. Consumer Goods Index lost 0.32% on the back of loses in FLOURMILL (-3.15%), DANGSUGAR (-1.08%) and GUINNESS (-3.16%)
4. Industrial Goods Index dropped by 2.74% following loses in BUACEMENT (-5.88%) and WAPCO (-2.40%)
5. Banking Index lost 2.98% due to profit taking in ZENITHBANK (-4.28%) and GUARANTY (-2.84%)

Investor Sentiment

Investor sentiment weakened to 0.4x from the 15.5x recorded in the preceding session as 15 stocks gained against 34 losers.

Top 5 gainers by percentage are;

1. BOCGAS gained 9.72% to close at N10.50
2. NEM gained 9.50% to close at N1.96
3. SOVRENINS gained 9.09% to close at N0.24
4. JAPAULGOLD gained 8.82% to close at N0.74
5. LIVESTOCK gained 8.63% to close at N1.51

Top 5 losers by percentage are;

1. OANDO lost 10.00% to close at N3.33
2. FTNCOCOA lost 9.72% to close at N0.65
3. MAYBAKER lost 8.55% to close at N3.21
4. FBNH lost 8.28% to close at N7.20
5. ABCTRANS lost 7.89% to close at N0.35

Outlook

Despite the loses recorded today, we expect the upcoming earnings season to dictate market direction going forward in the month.