Mid-week and the equities market continues on a losing streak, sinking to a twenty five week low. The All Share Index at the close of business on Wednesday slid 0.8% to close at 25,653.14 (25,8578.06 on Tuesday). Year-to-Date return was thus pressured to berth at -10.44%.
Weighing down the benchmark index, all sectors closed in the red except the Industrial Goods index which gained 0.08% on account of WAPCO (+0.2%). Sell-offs on FORTE (-7.4%) and OANDO (-4.9%) pushed the Oil & Gas index down by (-1.8%). The Banking index followed by shedding 1.2% while a 0.9% loss placed the Consumer Goods index after. Likewise the Insurance index depreciated 0.3%.
Activity levels today was mixed, with the volume of transactions declining 23.18%, while the value of transactions advanced by 49.17% accordingly. Investor sentiment dipped significantly, as evidenced from market breadth (advancers/decliners ratio) which on the back of six gainers against thirty-three decliners closed at 0.18x.
7UP led the band of decliners by shedding 9.74% to close at N129.36. TRANSCOHOT (-9.66%) followed and was trailed by PAINTCOM (-9.52%), TRANSCORP (-7.59%), and FO (-7.43%).
The prevailing mood is expected to persist for the rest of the week and an uninspiring month.
As for the daily standing, the top five performers were FIDSON (4.88%), INTBREW (4.68%), UBN (3.37%), ETI (2.00%) and AFRIPRUD (1.15%) accordingly.
The outlook is based on sustained investors’ apprehension towards the equities market, given the weak economic fundamentals and the dearth of market moving news to boost confidence. Investors have taken upon a pessimistic disposition with the broader index down 7.9%.
Regardless, bargain hunters are being enticed by some stocks that are proving attractive on the back of the current downtrend.
