Business
NSE LIVE! Dangote Cement drags equities to N149bn loss
A major selloff on Nigeria’s most capitalised quoted company, Dangote Cement Plc, coloured the market situation negative on Monday, leaving investors with net capital loss of N149 billion.
Dangote Cement, which accounts for nearly one-third of the equities’ market capitalisation, suffered a loss of N192.4 billion after it dropped by N11.29 per share or 7.0 per cent to close at N149.26. The steep decline in the share price of Dangote Cement countered gains by many highly capitalised stocks.
Aggregate market value of all quoted equities at the Nigerian Stock Exchange (NSE) declined from its opening value of N8.656 trillion to close at N8.507 trillion, representing a net loss of N149 billion. The All Share Index (ASI), the benchmark index for the Exchange, declined by 1.72 per cent from its opening index of 25,012.08 points to close at 24,581.99 points.
The average year-to-date return at the stock market worsened to -8.53 per cent, unnerving the investors even as the earnings season gathered momentum. Access Bank on Monday released its full-year audited report for the 2016 business year, announcing gross dividend of about N19 billion after profit after tax rose by 8.5 per cent to N71.44 billion.
Most sectoral indices still showed positive underlying sentiments. The NSE Consumer Goods Index appreciated by 3.7 per cent. The NSE Oil & Gas Index rose by 3.3 per cent while the NSE Insurance Index inched up by 0.4 per cent. On the downside, the NSE Industrial Goods Index was weighed down by Dangote Cement by 5.9 per cent while the NSE Banking Index slipped by 0.3 per cent.
Read also: NSE RoundUp! Nigerian equities lose N83bn in emerging markets slump
Dangote Cement led a 20-stock losers’ list. Seven-Up Bottling Company followed with a loss of N9 to close at N86. Guinness Nigeria declined by N2.15 to close at N61.35. CAP lost N1.48 to close at N28.12. Unilever Nigeria dropped by N1.17 to close at N27.81. Okomu Oil Palm lost 70 kobo to close at N48. UAC of Nigeria dropped by 55 kobo to close at N12.80. Africa Prudential Registrars declined by 30 kobo to close at N2.40. Access Bank dropped by 25 kobo to close at N6.48 while United Capital slipped by 13 kobo to close at N2.72 per share.
Total turnover slowed down to 128.16 million shares valued at N1.47 billion in 2,978 deals. Zenith Bank remained the most active stock with 24.03 million shares worth N348.76 million. United Bank for Africa recorded a turnover of 14.9 million shares valued at N74.7 million while Transnational Corporation of Nigeria placed third with 12.47 million shares valued at N8.67 million.
On the upside, Nestle Nigeria, the highest-priced stock at the stock market, led a 15-stock gainers’ list with a gain of N62.58 to close at N691. Forte Oil rose by N2.63 to close at N54.50. Nigerian Breweries added N1.15 to close at N130.05. Guaranty Trust Bank chalked up 20 kobo to close at N25 while Zenith Bank gathered 15 kobo to close at N14.50 per share.
“We expect market performance to be driven by further influx of full-year 2016 earnings in the week. Nevertheless, we believe sentiment will remain constrained as investors continue to focus attention on key macroeconomic developments,” analysts at Afrinvest Securities stated.
Analysts at SCM Capital Markets also remained cautious. “We do not expect any significant change in the market mood. We however, anticipate a positive trading with the bulls having a slight edge as the market looks attractive,” SCM Capital Markets stated.
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Johnson Amadi
March 7, 2017 at 12:25 pm
I feel so sad each time Dangote drops point in NSE. This is a huge loss on the company’s part compared to other firms
Margret Dickson
March 7, 2017 at 2:09 pm
Is Dangote your father? This man don’t even know you exits, why feel sad over another man’s headache?
Balarabe musa
March 7, 2017 at 6:29 pm
You are the mumu here. You are just being jealous. Dangote is our only richest man in Africa from Nigeria and we have to share his pains with him as without him, the economy will worst than this. May be your father even work in dangote company.
Animashaun Ayodeji
March 7, 2017 at 12:31 pm
While Nigerians are still broke, the consumption of alcohol and soft drinks have reduced, this is why Seven Up and Guinness Nigeria will continuously loose.
yanju omotodun
March 7, 2017 at 4:16 pm
So many people don’t understand the concept of stock market. That Guinness and 7up are at the losing side or dangote does not mean people don’t patronize their products and does not mean they had losses on their products. It simply means the investment they had in the stock exchange market, didn’t yield them company which has no relationship in anyway with their market products.
JOHNSON PETER
March 7, 2017 at 5:11 pm
Good analyses. I always stumble over the stock market stuff of a thing. Now I understand that a loss at stock market is not a loss of profits over the sales of the company’s products.