Stocks erase two-day gain on high speculative tendency

THE equities market closed yesterday on a negative note, as Nigerian Stock Exchange[NSE] All Share Index[ASI] depreciated by 0.89 per cent to close at 29,642.38 basis points, compared with the 0.16 per cent appreciation recorded previously. Its Year-to-Date (YTD) returns currently stands at  14.47 per cent.

  Market breadth closed negative as Cap led 19 gainers against 26 losers topped by Flour Mill at the end of yesterday’s session- an unimproved performance when compared with previous outlook.

  Market turnover closed positive as volume moved northwards by 227.76 per cent against -48.15 per cent decline recorded in the previous session. Fidelity bank, ETI and Dangote Sugar were the most active to boost market turnover. ETI and Guaranty bank topped market value list.

  Sectoral indices, industry recorded 0.89 per cent loss to emerge the most supportive sectoral index among others while NSE 30 emerged as worst hit to close with -1.13 per cent

  Volume shockers included Vitafoam which led the list of active stocks that record impressive volume spike at the end of yesterday’s session.

  Meanwhile, at the domestic fixed income market, earlier in the week, selling activities were experienced and yields inched up across most maturities as players reduced their fixed income positions due to speculations regarding the likely outcome of the MPC meeting. 

  However, in the later part of the week, demand was driven by local investors and traders covering positions taken prior to the MPC meeting whilst offshore investors remained cautious given current economic fundamentals. On a week-on-week basis, yields climbed by an average of 44basis points across board.

In the week ahead, DunnLorenMerrifield analysts expect  bills worth N234.67billion will be redeemed.  As the CBN continues to mop up excess liquidity via its OMO auctions, we expect market demand to be driven by domestic investors on the back of improved confidence.