For the second consecutive trading session, Nigerian equities remained under intense sell pressure on Wednesday as investors continued to readjust their portfolios in view of the current valuations and prospective fourth quarter earnings.
With nearly two decliners to every advancer, Nigerian equities recorded a net capital depreciation of N116 billion on Wednesday. The market had lost N125 billion at the onset of the downtrend on Tuesday.
The All Share Index-the benchmark value-based index that tracks share prices at the Nigerian Stock Exchange (NSE), recorded a day-by-day depreciation of 0.91 per cent to close at 36,617.45 points as against its opening index of 36,953.41 points.
With 26 decliners to 15 advancers, aggregate market value of all quoted equities dropped from its opening value of N12.789 trillion to close at N12.673 trillion. With this, the average year-to-date return declined to 36.25 per cent.
Most sectoral indices expectedly closed negative. The NSE Industrial Goods Index dropped by 1.5 per cent. The NSE Insurance Index declined by 1.0 per cent. The NSE Consumer Goods Index dropped by 0.9 per cent while the NSE Oil and Gas Index closed flat. However, the NSE Banking Index appreciated by 1.0 per cent.
Total turnover stood at 184.24 million shares valued at N3.32 billion in 3,590 deals. The three most active stocks were: FBN Holdings, with 27.05 million shares; Zenith Bank, with 24.69 million shares and Fidelity Bank, which recorded a turnover of 18.04 million shares.
Dangote Cement-the most capitalised quoted company, led the decliners with a loss of N6.55 to close at N230 per share. Seven-Up Bottling Company and PZ Cussons Nigeria followed with a loss of N2 each to close at N86 and N20.40 respectively. Unilever Nigeria lost N1.90 to close at N36.10. Nascon Allied Industries declined by 77 kobo to close at N14.63 while Nigerian Breweries dipped by 75 kobo to close at N139 per share.
On the positive side, Guinness Nigeria led the advancers with a gain of N1 to close at N101. Guaranty Trust Bank followed with a gain of 94 kobo to close at N42.50. International Breweries added 45 kobo to close at N50. Zenith Bank rose by 27 kobo to close at N23.95. Red Star Express gathered 24 kobo to close at N5.04 while Union Bank of Nigeria added 7.0 kobo to close at N6.11 per share.
Market analysts said the sustained decline in share prices could trigger a bullish rally in the next trading sessions, although a downward review of some equities from the MSCI Index could also weighed on the performance of such stocks.
“…we do not rule out the potential for bargain hunting on some large cap stocks which have dragged market performance in prior trading sessions,” Afrinvest Securities stated.
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