The equities market slumped -0.54% as negative reactions surprisingly continued to trail the release of banking results. Tier I bank such as Zenith -1.81% fell to a 1-month low on strong foreign selling; the negative reaction hit yet to report UBA(-2.06%) and Access(-3.52%) while Guaranty which published an impressive N200bn PBT was initially hit to a 2-month low post announcement, albeit bargain hunting helped erase the loss towards the close. The sell-off was bigger in tier II banks such as Diamond(-7.34%), FCMB(-5.28%) and Fidelity(-4.75%).
The bearish vibe hit trading in consumer stocks – Dangsugar(-4.93%), Nestle(-1.43%) and Cadbury(-4.74%) all dropped on risk aversion. Bucking today’s trend was NB(+0.69%) which rose on fresh foreign interest and Stanbic(+1.13%) which gained on modest FY 17 provision and thin liquidity.
Turnover stayed decent at N6.8bn ($18.8m) buoyed mainly by a 14mln cross in NB($6.6m) between foreign investors. Ytd return fell to +12.02%, we expect bargain hunting to support the market in coming sessions.