NSE! Equities lose N39bn as downtrend persists

Nigerian equities remained on the downtrend for the second consecutive trading sessions in the second quarter, raising concerns on the extension of the losing streak that saw the market closing March 2018 with net capital loss of N557 billion.

Benchmark indices at the Nigerian Stock Exchange (NSE) on Wednesday showed average day-on-day decline of 0.26 per cent, equivalent to net capital loss of N39 billion. The sustained declined depressed the average year-to-date return to 6.77 per cent. Nigerian equities had closed the first trading session of the second quarter on Tuesday with a net capital depreciation of N234 billion.

The All Share Index (ASI)-the common value-based index that tracks share prices at the Exchange, dropped from its opening index of 40,855.64 points to close at 40,749.86 points. Aggregate market value of all quoted equities also declined from its opening value of N14.759 trillion to close at N14.720 trillion.

Read also: NSE RoundUp! Nigerian equities lose N557bn in March downtrend

With 26 decliners to 18 advancers, most sectoral indices also closed in the red. The NSE Banking Index declined by 0.9 per cent. The NSE Insurance Index dropped by 0.6 per cent while the NSE Consumer Goods Index dipped by 0.3 per cent. On the positive side, the NSE Industrial Goods Index improved by 0.6 per cent while the NSE Oil & Gas Index inched up by 0.1 per cent.

Zenith Bank led the decliners with a loss of N2.45 to close at N27.35. Mobil Oil Nigeria followed with a drop of N2 to close at N183. Dangote Flour Mills lost N1.45 to close at N13.75. Ecobank Transnational Incorporated declined by 65 kobo to close at N16.35. Flour Mills of Nigeria and Nascon Allied Industries dropped by 50 kobo each to close at N36.80 and N21 respectively. Eterna declined by 31 kobo to close at N6.01 per share while UAC of Nigeria dropped by 30 kobo to close at N17.20 per share.

On the upside, Forte Oil led the advancers with a gain of N1.10 to close at N41.90. Stanbic IBTC Holdings followed with a gain of N1 to close at N49. Guaranty Trust Bank rose by 90 kobo to close at N44.30. Access Bank and Lafarge Africa added 55 kobo to close at N11.80 and N44. Union Bank of Nigeria rose by 25 kobo to close at N6.95 per share while Fidelity Bank chalked up 14 kobo to close at N2.57 per share.

Total turnover stood at 401.41 million shares valued at N6.77 billion in 5,370 deals. FBN Holdings was the most active stock with a turnover of 70.76 million shares valued at N863.58 million. Zenith Bank followed with a turnover of N61.23 million shares worth N1.67 billion while Fidelity Bank placed third with 43.70 million shares worth N109.84 million.

Most analysts however expected a rebound in the market as share prices become more attractive.

“Following two consecutive days of decline, we do not rule out the possibility of a rebound in performance driven by bargain hunting in subsequent trading session,” Afrinvest Securities stated in a post-trading note on Wednesday.

“Despite the current bearish theme, we do not rule out the possibility of a rebound in performance driven by bargain hunting in badly beaten counters,” SCM Capital also agreed.

 

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