August 4, 2020

Market wrap 04/08/2020

Trading activities in the new month continued on a modestly positive note today, with the market index up by +0.31% to close at 24,841.94. Gains in consumers major UACN (+8.73%) following news of divestment of controlling stake in its subsidiary -UAC-Prop (+3.70%), alongside upticks in NB(+3.23%); rebound in Seplat (+3.48%) and sustained domestic bargain hunting in select banking counters like Zenith(+3.67%), Guaranty(+1.31%) and ETI (+2.44%) ahead of Q2 earnings announcement were some of the key drivers . These offset weakness in energy counters Total (-9.91%); Ardova (-9.67%) and consumers majors Unilever (-8.57%) and Glaxosmith (-8.49%).

Turnover however remained low at N1.46bn ($3.8mln), and was boosted by offshore crosses in NB ($0.7m) and Seplat ($0.3m). The NSEASI ytd return moderated to -7.45%. We expect the market to trade with similar sentiments in the next session.