NSE LIVE! Equities continue decline with N37bn loss

The downtrend at the Nigerian stock market continued on Wednesday as quoted equities remained under intense sell pressure orchestrated by profit-taking transactions.

With nearly three decliners to every advancer, most transactions again closed at lower prices on Wednesday at the Nigerian Stock Exchange (NSE), shaving the overall market value of all quoted equities by N37 billion.

All key benchmark and sectoral indices showed widespread selling sentiments across the sectors as investors continued the scramble to take profits on earlier rally and readjust their portfolios ahead of the expected release of the half year and second quarter results.

Nigerian equities had recorded net capital gain of more than N2.6 trillion in the second quarter, building up substantial capital appreciation for most stocks. Investors now appeared to be unlocking such built-up values.

With 33 decliners to 12 advancers, aggregate market value of all quoted equities at the Exchange dropped from its opening value of N11.170 trillion to close at N11.133 trillion. The All Share Index (ASI)-the common value-based index that tracks prices at the NSE, showed a day-on-day depreciation of 0.33 per cent, dropping from its opening index of 32,410.20 points to close at 32,302.32 points. This pared the average year-to-date return to 20.20 per cent.

Read also: NSE LIVE! Equities remain under sell pressure with N162bn loss

Most sectoral indices also closed in the red. The NSE Consumer Goods Index declined by 0.9 per cent. The NSE Banking Index dropped by 0.3 per cent. The NSE Oil & Gas Index declined by 0.2 per cent while the NSE Insurance Index slipped by 0.04 per cent.However, the NSE Industrial Goods Index inched up by 0.02 per cent.

Flour Mills of Nigeria, which recently announced decline in profit and a dividend per share of N1, topped the decliners with a loss of N2.49 to close at N23.14. Unilever Nigeria followed with a drop of N1.84 to close at N35.03. Julius Berger Nigeria lost N1.69 to close at N32.14. Guinness Nigeria, which on Monday concluded arrangements for a rights issue, dropped by N1.54 to close at N63. PZ Cussons Nigeria lost N1.21 to close at N23.14. Mobil Oil Nigeria continued decline with a loss of 98 kobo to close at N236.55. Cadbury Nigeria declined by 66 kobo to N12.64. Ecobank Transnational Incorporated dropped by 52 kobo to close at N12.36. Dangote Sugar Refinery lost 43 kobo to close at N8.36 while University Press dipped by 17 kobo to close at N3.40 per share.

Investors traded a total of 311.38 million shares worth N2.97 billion in 4,312 deals. Niger Insurance was the most active stock with 62.9 million shares worth N31.45 million. FBN Holdings followed with 30.5 million shares valued at N183.7 million while Transnational Corporation of Nigeria ranked third with a turnover of 30.2 million shares worth N38.8 million.

On the upside, Nestle Nigeria led the advancers with a gain of 50 kobo to close at N901.50. Berger Paints followed with a gain of 31 kobo to close at N7.15. Nigerian Breweries rose by 30 kobo to close at N158.35. United Bank for Africa added 18 kobo to close at N8.38. FBN Holdings chalked up 14 kobo to close at N6.05 per share. Fidson Healthcare rallied 13 kobo to close at N2.84 while E-Tranzact rose by 10 kobo to close at N5 per share.

Analysts at Afrinvest Securities stated that the continuous decline in share prices has presented an opportunity for bargain-hunters to take advantage of badly beaten stocks noting that expected bargain-hunting may trigger a rebound in the equities market in the next trading sessions ahead.

 

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