Losers overwhelm Dangote as equities relapse

In from Success Allantee …
Dangote Cement Plc failed to reenact the dramatic change that staved off a negative market position on Tuesday as losses by severally highly capitalised stocks overwhelmed the gain by Nigeria’s most capitalised stock.
While Dangote Cement gained for the second consecutive day amidst generally negative market, the overall market position shifted downward to reflect the losses by several highly capitalised and ordinary stocks.
Dangote Cement, Nigeria’s most capitalised stocks, had on Tuesday led 11 other minor gainers to override the widespread losses recorded by 33 stocks. The market then on Tuesday pulled back from seven-day consecutive losing streak with a gain of 0.68 per cent.

With 38 decliners against five advancers, the tide changed on Wednesday as the sudden last-minute rally by Dangote Cement, which rose by N3, failed to tilt the overall market position to the positive side.
The All Share Index (ASI), the value-based composite index that tracks prices of all quoted equities on the Nigerian Stock Exchange (NSE), indicated average day-on-day decline of 0.23 per cent to close at 30,042.38 points as against its opening index of 30,112.62 points. Aggregate market value of all quoted equities also dropped from N10.321 trillion to close at N10.297 trillion, representing a loss of N24 billion.
With the negative overall position, the negative average year-to-date return at the stock market now stand at -13.32 per cent.

GlaxoSmithKline Consumer Nigeria led the losers yesterday with a drop of N1.89 to close at N36.11. Cadbury Nigeria followed with a loss of N1.50 to close at N28.56. Okomu Oil Palm declined by N1.20 to close at N22.85. Forte Oil dropped by N1.08 to close at N218.90. Lafarge Africa lost 87 kobo to close at N100.63. Northern Nigeria Flour Mills dropped by 64 kobo to close at N12.19. Oando declined by 57 kobo to close at N10.83. Stanbic IBTC Holdings slipped by 42 kobo to close at N18. Guaranty Trust Bank dropped by 40 kobo to close at N22 while Union Bank of Nigeria lost 34 kobo to close at N6.95 per share.
Besides Dangote Cement, the four other gainers yesterday included Flour Mills of Nigeria, which rose by 10 kobo to close at N25.41; Paints Manufacturing Company, which added four kobo to close at N1 and Ecobank Transnational Incorporated and May & Baker Nigeria, which rose by three kobo each to close at N18.70 and N1.30 respectively.

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Aggregate turnover dropped below average with the exchange of 299.7 million shares valued at N2.55 billion in 3,560 deals. United Bank for Africa (UBA) was the most active stock with a turnover of 65.95 million shares with N211.86 million in 259 deals. Access Bank followed with a turnover of 39.13 million shares worth N162.9 million in 259 deals while Skye Bank placed third with a turnover of 30.42 million shares worth N53.93 million in 109 deals.

Analysts at Afrinvest Securities noted that the negative investor sentiments in equities remained unchanged.
“As the market continues on its tailspin, investors are advised to maintain a medium to long term investment horizon in equities,” Afrinvest Securities stated in post-trading review.

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