May 31, 2019

Market Wrap 31/05/2019

Bearish sentiments from renewed sale pressure across most sectors dominated the equities market today, leaving the index 59bps lower at 31,069.37. Activities were also lacklustre, save for block trades in a few counters. The banks were the major drags, led by UBA-(5.30%), Stanbic(-2.33%), Zenith(-2.19%) and Guaranty(-1.25%), supported by  pullbacks in Brewers NB(-3.33%) and Guinness(-3.96%) on cross trades, alongside UACN(-2.86%) which contracted amid news of an impending capital raise of about N16b ($44m)  likely through a Rights issue. Cement and energy names were also not spared as Dangcem(-0.15%), WAPCO(-5.61%) and Oando (-9.68%) declined. Gains in MTN (+0.37%) and FO (+2.23%) did little to offset the general negative market breadth on the day.

Market turnover fell to N2.7bn ($7.6m), dominated by offshore crosses in Guaranty ($1.8m); UBA ($0.7m) and Dangcem ($0.6m), while Custody($0.4m) mainly involved locals. The index lost-1.25% w/w, while Ytd loss widened to -0.59%, though MTD was strongly positive (+6.55%) thanks to the MTN listing. We expect the market to resume cautiously in the next month.