For the second consecutive trading session, Nigerian equities on Tuesday traded mostly on the negative side, closing with a net capital loss of N53 billion.
With nearly two losers to every gainer, the market remained under sell pressure due to profit-taking transactions on most stocks, especially large-cap stocks in the industrial, consumer goods and oil and gas sectors.
The average day-on-day decline of 0.42 per cent on Tuesday shaved the overall year-to-date average return to 34.57 per cent.
Aggregate market value of all quoted equities on the Nigerian Stock Exchange (NSE) dropped from its opening value of N12.518 trillion to close at N12.465 trillion, representing a net capital depreciation of N53 billion. The All Share Index (ASI)-the common value-based index that tracks share prices at the stock market, also declined correspondingly from its opening index of 36,317.31 points to close at 36,165.93 points.
Nearly all sectoral indices closed negative with the exception of the NSE Banking Index, which rose by 0.3 per cent. The NSE Industrial Goods Index and the NSE Oil & Gas Index declined by 0.45 per cent each. The NSE Consumer Goods Index dropped by 0.38 per cent while the NSE Insurance Index slipped by 0.01 per cent.
There were 26 losers against 14 gainers. Mobil Oil Nigeria led the losers with a drop of N9.14 to close at N173.79. Okomu Oil Palm followed with a decline of N3.45 to close at N65.64. Dangote Cement dropped by N2.34 to close at N212.65. Julius Berger Nigeria lost N1.79 to close at N34.20. Nigerian Breweries dropped from N1.41 to close at N183.60 while Guinness Nigeria dropped by N1.09 to close at N76.98 per share.
On the upside, Stanbic IBTC Holdings, which declared an interim dividend of 60 kobo per share, led the gainers with a gain of 50 kobo to close at N40.50. Guaranty Trust Bank followed with a gain of 30 kobo to close at N39.50. Champion Breweries rose by 16 kobo to close at N2.50. Custodian and Allied Industries added 15 kobo to close at N3.56. May & Baker Nigeria rose by 13 kobo to close at N2.88 while Cutix and Union Bank of Nigeria chalked up 10 kobo each to close at N2.21 and N6 respectively.
Total turnover stood at 144.45 million shares valued at N1.51 billion in 3,716 deals. The three most active stocks were Fidelity Bank, with a turnover of 23.27 million shares; Zenith Bank, 18.19 million shares and FCMB Group, which recorded a turnover of 17.33million shares.
Market analysts have attributed the sustained decline to profit-taking transactions and monetization due to the demand for cash as the Muslims look forward to the Eid-ul-Kabir festival, their main feast during which Rams are slaughter.
“Nonetheless, we believe this trend will be reversed on account of bargain hunting in subsequent sessions,” Afrinvest Securities hinted on possible recovery over the next trading sessions.
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