January 8, 2019

Market Wrap 8th of January 2019

Renewed sale pressure in the banks dragged the market index lower for the fifth consecutive session with the index down by -120bps on the day.  Blood in the streets among the banks with increased offshore selling observed possibly on the back off news surrounding Teleology Holdings’ decision to pull out of 9mobile’s acquisition deal with Guaranty (-5.47%), Zenith (-4.69%), UBA (-5.19%), FBNH (-4.67%) and Stanbic (-1.81%) as major drags. The consumers were more subdued, with gains recorded in Okomu (+7.93%), NB (0.51%) and Lafarge (+3.08%) though Intbrew (-1.59%) and Flourmill (-8.63%) however retreated.

Market turnover fell to N2.7bn ($7.3m) buoyed by offshore crosses in Nestle ($1.4m) and Guaranty ($0.8m). Ytd loss on the index widened to -4.44%. We expect the market to trade sideways in the next session.