NSE LIVE! Equities continue decline with N91b loss

Nigerian equities fell for the third consecutive trading session on Tuesday but the momentum of the decline slowed down considerably, raising analysts’ expectations that the market might pick up towards the end of the week.

Against the rallies that dominated the market in the previous week, Nigerian equities have been under massive sell-off since Friday when the news of the decision of the United Kingdom (UK) to withdraw from the 28-nation European Union (EU) hit the global markets. Nigerian stock market has large foreign portfolio investors, who account for nearly half of transactions.

Nigerian equities broke their upswing on Friday with a loss of N144 billion and followed this with a loss of N278 billion on Monday. Day-on-day loss however slowed down to N91 billion on Tuesday. Average day-on-day decline slowed down to 0.89 per cent on Tuesday as against 2.64 per cent on Monday.

The All Share Index (ASI), the main index for that tracks quoted equities at the Nigerian Stock Exchange (NSE), declined for the third straight trading session, dropping from opening index of 29,840.23 points to close at 29,575.24 points. Aggregate market value of all quoted equities on the NSE also dropped from N10.249 trillion to
close at N10.158 trillion. Average year-to-date return at the stock market thus pared down to 3.26 per cent.

With 34 losers to 15 gainers, sectoral and group indices showed widespread selling sentiments across the sectors and stock groups, with highly capitalised stocks mostly headlining the losses. The NSE Banking Index declined by 1.6 per cent. The NSE Insurance Index slipped by 0.4 per cent. The NSE Consumer Goods Index dropped by 1.7 per cent. The NSE Oil & Gas Index dropped by 3.4 per cent while the NSE Industrial Goods Index closed flat.

Total Nigeria led the losers’ list with a loss of N10 to close at N190. Nestle Nigeria followed with a drop of N5.01 to close at N849.99. Nigerian Breweries dropped by N4 to close at N140. Guinness Nigeria declined by N3.50 to close at N106.40. Guaranty Trust Bank lost 68 kobo to close at N22.32. Oando declined by 38 kobo to close at N6.27. Flour Mills of Nigeria dropped by 36 kobo to close at N22.32. Zenith Bank dropped by 31 kobo to close at N15.65. FBN Holdings declined by 24 kobo to close at N3.81 while Champion Breweries lost 23 kobo to close at N40.69 per share.

Investors however appeared to be holding back to sell orders as turnover of activities dropped by 32 per cent.

Aggregate turnover stood at 255.25 million shares valued at N3.30 billion in 4,812 deals. The most active stock was Transnational Corporation of Nigeria (Transcorp), with 43.77 million shares valued at N79.43 million. Guaranty Trust Bank followed with a turnover of 42.78 million shares worth N961.10 million while FBN Holdings recorded a turnover of 25.69 million shares valued at N100.62 million.

On the upside, Seplat Petroleum Development Company led the 15-stock gainers’ list with a gain of N8.40 to close at N340. Julius Berger Nigeria rose by N2.31 to close at N48.51. Forte Oil added N1 to close at N191. Okomu Oil Palm garnered 99 kobo to close at N32. Union Dicon Salt gathered 75 kobo to close at N15.75 per share. Presco added 50 kobo to close at N37. Ecobank Transnational Incorporated rose by 40 kobo to close at N16.70. Red Star Express gathered 39 kobo to close at N4.33. PZ Cussons Nigeria rose by 35 kobo to close at N23 while Neimeth Pharmaceutical International chalked up 10 kobo to close at N1.19 per share.

“We believe the benchmark index will appreciate as we approach the end of the week as investors hunt for value ahead of second quarter 2016 earnings releases,” Afrinvest Securities, a Lagos-based dealer on the NSE, stated.

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