NSE! Equities reopen on downtrend with N18bn loss

After losing N41 billion in net capital depreciation last week, Nigerian equities reopened on Monday on the same downtrend, despite release of many corporate earnings for first quarter 2018. Benchmark indices at the Nigerian Stock Exchange (NSE) indicatedaverage decline of 0.12 per cent in the five-hour trading session on Monday, representing net capital loss of N18 billion.

With many decliners than advancers, the negative overall market situation was driven by continuing selloffs across the sectors, especially within the large-cap stocks that dominated the industrial goods and banking sectors.

The All Share Index (ASI)-the value-based benchmark index that tracks share prices at the NSE, declined from its opening index of 40,814.89 points to close at 40,763.93 points. Aggregate market value of all quoted companies also dropped from its opening value of N14.743 trillion to close at N14.725 trillion. The decline depressed the average year-to-date return to 6.59 per cent.

Most sectoral indices expectedly closed negative. The NSE Industrial Goods Index declined by 2.7 per cent. The NSE Banking Index dropped by 0.6 per cent while the NSE Insurance Index dipped by 0.4 per cent. Meanwhile, the NSE Oil & Gas Index rose by 0.6 per cent while the NSE Consumer Goods Index inched up by 0.3 per cent.

Flour Mills of Nigeria led the decliners with a loss of N1.65 to close at N33.55. Dangote Cement followed with a drop of N1.50 to close at N248. Guaranty Trust Bank declined by 95 kobo to close at N43.90. Lafarge Africa and Dangote Sugar Refinery lost N43.60 and N20.55 respectively while International Breweries dropped by 50 kobo to close at N47.

Read also: NSE RoundUp! Nigerian equities buck global uptrend with N41bn loss

On the upside, Nigerian Breweries led the advancers with a gain of N3.60 to close at N129.70. Forte Oil rose by N1.85 to close at N39.30. GlaxoSmithKline Consumer Nigeria appreciated by N1.70 to close at N32. Stanbic IBTC Holdings rose by N1 to close at N50 while FBN Holdings chalked up 60 kobo to close at N13.45 per share.

Total turnover stood at 530.22 million shares valued at N7.77 billion in 4,567 deals.

Most analysts remained optimistic about the outlook for the equities market. Analysts at Afrinvest Securities said the bearish performance on Monday has created upside potential for many stocks.

“We expect bargain hunting to continue to drive positive market performance in the near term as first quarter 2018 earnings reports roll out,” Afrinvest Securities stated.

Cordros Capital noted that despite continued selloffs, relatively lower share prices, as well as still-positive macroeconomic fundamentals, suggested potential for further capital appreciation.

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