NSE LIVE! Dangote Cement drags equities to N170bn loss

Nigerian equities traded on Monday on a tight balance of bargain-hunting and profit-taking but a considerable decline in the share price of Dangote Cement Plc weighed down the overall market performance.

With 19 decliners and 19 advancers respectively, the decline in the market valuation of Dangote Cement led the market to a net capital loss of N170 billion.

The All Share Index (ASI)-the main index that tracks share prices at the Nigerian Stock Exchange (NSE), dropped by 1.24 per cent from its opening index of 38,436.08 points to close at 37,957.96 points. Aggregate market value of all quoted equities also declined from its opening value of N13.678 trillion to close at N13.508 trillion. The average year-to-date return was depressed to 41.2 per cent.

The negative overall market position was due mainly to losses recorded by high-cap stocks, especially Dangote Cement, which controls more than one-quarter of the market capitalisation. Dangote Cement lost N10 on Monday to close at N230 per share.

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Most sectoral indices closed negative, underlining the influence of the large stocks. The NSE Industrial Goods Index dropped by 2.0 per cent. The NSE Consumer Goods Index followed with a drop of 0.7 per cent. The NSE Insurance Index dipped by 0.5 per cent while the NSE Oil and Gas Index closed falt. Meanwhile, the NSE Banking Index inched up by 0.4 per cent gain.

Other top decliners included International Breweries, which lost N2.74 to close at N52.10. Nascon Allied Industries declined by 96 kobo to close at N18.34. Cadbury Nigeria dropped by 87 kobo to close at N13.90 while Flour Mills of Nigeria lost 83 kobo to close at N30.

On the positive side, Presco led the advancers with a gain of N5.83 to close at N72. Lafarge Africa followed with a gain of 49 kobo to close at N43.50. Dangote Flour Mills rose by 38 kobo to close at N12.18. Union Bank of Nigeria added 37 kobo to close at N7.92 while FBH Holdings rallied 26 kobo to close at N9 per share.

“With the bearish mood in the market today (Monday), the equity market is moving close to an oversold position and may rebound during the week,” FSDH Securities stated.

“Despite today’s negative performance, market breadth strengthened. Hence, we expect a rebound in subsequent trading sessions as investors take position in anticipation of year-end rally,” Afrinvest Securities stated.

 

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