Thursday, October 22, 2020 / 10:37 AM / by UnitedCapital Research / Header Image Credit: Business LIVE

Yesterday, the Nigerian Stock Exchange All-Share Index(NSE-ASI) ended in the red territory as market participants priced-in theheightened risk around the fatal outcome of what started as a peaceful protestin Nigeria. Specifically, investors lost N113.1bn as the NSE-ASI was down by0.75% to close the day at 28,449.4 9points. Also, volume and value of stockstraded on the exchange rose 10.1% and 44.4% to close at 327mn units and N4.2bn,respectively.

The performance across sectors was underwhelming, as all indices underour coverage ended the day in the red territory save for the Insurance index(+0.6%) which was buoyed by price appreciation in WAPIC (+10.0%). The Bankingindex led the losers camp, down 1.7% on the back of losses in GUARANTY (-1.3%)and ZENITH (-1.2%). Similarly, the Oil & Gas (-0.3%), Industrial Goods(-0.3%) and Consumer Goods (-0.1%) indices weakened, due to sell pressures inARDOVA (-10.0%), WAPCO (-4.4%), and GUINNESS (-5.9%) among others.

Clearly, the jitters about the ongoing standoff between protesters andthe government portends a negative outlook for the market in the interim andmay reverse the expected post-COVID-19 recovery in the economy. Also, thismay diminish the prospect of earnings improvement in Q4-2020E. Yet, weobserve that panic sales provide an opportunity for new or existing investorsto enter/re-enter the market at new lows amid record low yields environmentand pent-up liquidity in the system. As such, we maintain an optimisticoutlook for Nigerian stocks.

Related News - MarketUpdates

1. Investors Lose N113.07bn as NSEASI Dips by -0.75%, Halts Positive Posture
2. Investors Gain N3.93bn as NSEASI Inches Up Marginally by 0.03% Amid Improved Market Breadth
3. NSEASI Closed Flat Amid Negative Market Turnover
4. What To Expect From The Markets This Week - 191020
5. Investors Gain N127.61bn WoW as NSEASI Inches Up by 0.86% to Close the Week Positive
6. NSEASI Remained Flat Amid Improved Market Turnover, YTD Return Stands at 5.60%
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9. Investors Lose N40.67bn as NSEASI Dips by -0.27% to Open the Week Negative

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4. S and P Global Ratings Affirmed First Bank of Nigeria Ltd Ratings, Outlook Stable
5. FBNQuest Q3 2020 Economic Outlook: Oil, the Fed and Others to the Rescue
6. S and P Global Ratings Affirmed Nigeria's Long-Term Rating At 'B-'; Outlook Stable
7. Fitch Affirms Coronation Merchant Bank's Rating at B-
8. Fitch Rates Coronation Merchant Bank Limited at ''B-''; Outlook Negative
9. Nigeria in 2020: H1 Review - Will It Get Worse Before It Gets Better?
10. Agusto and GCR Affirm ''AAA'' Long Term Credit Rating of InfraCredit With Stable Outlook
11. Nigerian Economic and Financial Markets: H1:2020 Review and H2:2020 Outlook Opportunity in a Crisis?
12. Nigeria: 2020 Mid-Year Outlook - Into the Night
13. NOVA Economic Outlook H2 2020 - A Contraction Like Never Before
14. NSR H2 2020 (6) - Fiscal - New Budget, Same Old Problems
15. NSR H2 2020 (5) - Currency - Calm Before a Storm?
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18. NSR H2 2020 (2) - Balance of Payment - A Dire Outlook
19. NSR H2 2020 (1) - Crude Oil - Cast in COVID-19 Shadows
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