May 22, 2019

Market Wrap 22/05/19

The positive run in the domestic equities market was extended to the fifth consecutive session today (NSEASI +3.07%),  thanks largely to sustained rally in the two major market heavyweights. Newly listed MTNN(+9.98%) continued to enjoy a fairy tale run amid sustained (though waning) demand at the day’s limit up levels, whilst Cement major-Dangcem(+9.73%) also enjoyed a late rally from aggressive domestic buying to propel stock higher. They were joined by consumers UACN(+2.33%) and GSK(+5.29%) to mute the underlying market weakness and offset losses in Nestle (-7.69%); NB(-0.72%) and the Banks- UBA(+4.20%), Guaranty(-2.56%) and Zenith(-2.56%).

Turnover remained impressive at N17.5bn ($48.3m), dominated by trades mostly involving locals in MTNN ($37.5m) and Dangcem($1.6m). Ytd return on the index fell to -0.91%. We expect the market to gradually soften in the next session.