NSE LIVE! Early hitch slows down market as equities open with N29b loss

Activities at the Nigerian stock market were slowed down considerably on Monday as initial technical hitch delayed trading at the Nigerian Stock Exchange (NSE). Turnover at the stock market declined by more than 70 per cent as the five-hour trading cycle was reduced to some three hours.

The market also saw renewed sell-off with nearly two decliners for every advancer. Aggregate market value of all quoted companies on the NSE dropped from N9.429 trillion to close at N9.400 trillion, representing a net capital loss of N29 billion.

The All Share Index (ASI), the main index that tracks share prices on the NSE, declined by 0.30 per cent from 27,450.91 points to close at 27,368.41 points, pushing the average year-to-date return to -4.45 per cent.

Nearly all sectoral indices closed in the negative. The NSE Banking Index and the NSE Insurance Index declined by 0.5 per cent each. The NSE Consumer Goods Index dropped by 0.4 per cent. The NSE Oil and Gas Index slipped by 0.04 per cent while the NSE Industrial Goods Index closed flat.

Read also: Economy: Nigeria hits N1.09tn budget deficit for Q2

There were 17 losers to 10 gainers. Nigerian Breweries, the second most capitalised stock on the NSE, led the losers with a loss of N1.78 to close at N138.27. Guaranty Trust Bank, the most capitalised banking stock and fourth most capitalised stock, followed with a loss of 34 kobo to close at N25.95. Nigeria Aviation Handling Company (Nahco) dropped by 17 kobo to close at N3.23.

Africa Prudential Registrar, United Capital and Nascon Allied Industries dropped by 10 kobo each to close at N2.65, N2.27 and N7.90 respectively while Unity Bank declined by eight kobo to close at 76 kobo.

Total turnover volume and value declined by 70 per cent and 81 per cent to 83.83 million shares valued at N711.12 million in 2,279 deals. FBN Holdings was the most active stock with a turnover of 11.66 million shares valued at N34.95 million. FCMB Group followed with 8.83 million shares worth N9.31 million while Zenith Bank placed third with 7.84 million shares valued at N119.96 million.

On the positive side, Seven-Up Bottling Company led the gainers with a gain of N3.98 to close at N116.98. Champion Breweries followed with a gain of 9.0 kobo to close at N2.70. Dangote Flour Mills, NPF Microfinance Bank and Honeywell Flour Mills added 4.0 kobo each to close at N3.90, 99 kobo and N1.40 respectively while Wema Bank rose by 2.0 kobo to close at 66 kobo.

“Sentiment for equities is partly being dragged by the attractive yield environment in the money market segment of the debt market. This is highlighted by the significant decline in volume and value traded and total number of deals transacted today as the capital market prepares for Wednesday’s T-bills auction. Also, sentiment in equities may remain dampened in the interim amidst expectations of weaker macroeconomic indicators with the NBS set to release some reports this week.

Accordingly, we expect the market to trade sideways till midweek but we may see some bargain hunting towards the end of the week,” Afrinvest Securities, a Lagos-based dealer on the Exchange, stated.

 

 

 

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