NSE LIVE! Equities slip again as sell pressure mounts

The downtrend at the Nigerian stock market entered the third consecutive day on Wednesday as market forces failed again to respond to the stimulus of a N23 billion dividend declared by Nestle Nigeria Plc. Amidst excitements over the resilient performance of Nestle Nigeria, Nigeria’s highest-priced quoted company, equities remained under selling pressure.

The All Share Index (ASI)-the value-based index that tracks prices of all quoted companies on the Nigerian Stock Exchange (NSE), dropped by 0.34 per cent to close at 25,657.48 points as against its opening index of 25,745.13 points. This pushed the average year-to-date return to -10.42 per cent.

With nearly three decliners to every advancer, aggregate market value of all quoted equities dropped by N30 billion from N8.856 trillion to close at N8.826 trillion. There were 24 losers against nine gainers.

However, turnover jumped by 1,417.39 per cent on the back of a 4.16 billion shares deal on Unity Kapital Assurance Plc. Total turnover stood at 4.3 billion shares in 4,125 deals was recorded in the day’s trading. Expectedly, the insurance sub sector of the financial services sector was the most active with 4.2 billion shares exchanged by investors in 60 deals. Volume in the sub-sector was largely driven by activities in the shares of Unity Kapital Plc and Mutual Benefits Plc. Also, the banking sub sector, boosted by activities in the shares of United Bank for Africa (UBA)  and Guaranty Trust Bank, followed with a turnover of 71.86 million shares transacted in 1,348 deals.

Read also: NSE LIVE! Inflation, low corporate earnings drag equities down

Dangote Sugar led the gainers’ chart, appreciating by 4.99 per cent to close at N6.31 per share. Unity Bank Plc followed with a gain of 4.69 per cent to close at 67 kobo per share while Champion Breweries Plc gained 4.33 per cent to close at N3.13 per share.

On downside, Oando Plc led the losers with a loss of 9.54 per cent to close at N4.36 per share. Tiger Branded Consumer Goods Plc dropped by 6.25 per cent to close at N2.85 per share while Ecobank Transnational Incorporated (ETI), which on Tuesday alerted that it could record lower profit, dropped by 4.98 per cent to close at N15.45 per share.

Many analysts said they expected the negative trend to continue towards the end of the week. Analysts at Cordros Capital said that with Wednesday’s market breadth significantly negative, which indicated weak investors’ appetite, losses will most likely continue on Thursday.

“This week has seen investors booking profits on earlier positions, and the momentum seen suggests that similar sentiments will likely extend into (Thursday) tomorrow’s trading session,” United Capital stated.

 

 

 

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