Market sentiment closes negative as NSEASI dips by -0.14%

By Kehinde Ibrahim, Lagos
ACTIVITIES on the floor of the Nigerian Stock Exchange closed on a negative note yesterday as NSEASI depreciated by -0.14% to close at 32,108.92 basis points as against +0.03% appreciation recorded previously. Its Year-to-Date (YTD) returns currently stands at -16.04%.
Market breadth closed positive as Unity Bank led 16 Gainers as against 15 Losers topped by Diamond Bank at the end of yesterday’s session- an Improved performance when compared with previous outlook.
Market turnover closes negative as volume moved down by -42.65% as against +181.30% uptick recorded in the previous session. FBNH, Diamond Bank and Access  Bank were the most active to boost market turnover. FBNH and Zenith Bank topped market value list.
Nigerian stock market on Tuesday recorded a marginal gain, halting two previous sessions of losses on a seeming improved volume of trades driven by the huge interest in Ikeja Hotels, which resulted in N2.05 sell volume, as well as continued speculative trading in banking and industrial goods stocks that impacted the market positively.
The prevailing volatility and indecision in the market continued as the volume of trade remains small, besides low transactions that reflects the general mood of selloffs amidst repositioning in other stocks while interpretation of Q3 numbers continue ahead of the release of 2018 full-year financials.
The NSE All-Share Index opened the day on a flat note, but moved up and down in the mid-morning till midday as bargain hunters took advantage of low prices to position in some stocks that helped the index to touch intraday highs of 32,402.92 basis points, from a low of 32,101.80bps. It however pulled back at the last minutes, but closed above the day’s opening level at 32,153.90bps on negative sentiment.
The prolonged pullback in emerging markets due to the high yield environments in developed economies, after the more than triple the interest rate hike over a short period of time however had ripple effects including the trade war already manifesting in corporate earnings coming below market expectations in developed markets. Consequently, there is the high possibility of redirecting investments into emerging market, knowing that sovereign debts in these markets are low, with Price-to-Earnings ratio below its five-year low, given the recent pullbacks in oil price currently trading below $70 per barrel. This is likely to influence the U.S to slowdown rate hike as the economic growth remained strong.