For the second consecutive trading session, Nigerian equities remained on the downtrend as emerging third quarter earnings failed to quicken investors’ appetite for quoted shares.
After losing N78 billion in the opening trades on Monday, equities lost additional N27 billion on Tuesday.
The benchmark index for the Nigerian stock market, the All Share Index (ASI), declined by 0.29 per cent to close at 27,555.31 points as against its opening index of 27,634.99 points. Aggregate market value of all quoted equities on the Nigerian Stock Exchange (NSE) dropped from N9.492 trillion to close at N9.465 trillion, representing a loss of N27 billion. The downtrend pushed the average year-to-date return to -3.79 per cent.
Most indices remained in the red. The NSE Oil & Gas Index declined by 1.0 per cent. The NSE Banking Index dropped by 0.9 per cent. The NSE Insurance Index lost 0.3 per cent while the NSE Consumer Goods Index slipped by 0.1 per cent. However, the NSE Industrial Goods Index was the only contrarian index with a gain of 0.3 per cent.
Seplat Petroleum Development Company led the 27-stock losers’ list with a loss of N19 to close at N361. Nestle Nigeria followed with a loss of N5.57 to close at N800. Guinness Nigeria dropped by N3.18 to close at N79.11. UAC of Nigeria lost N1 to close at N19.40. GlaxoSmithKline Consumer Nigeria dropped by 87 kobo to close at N16.61. Cadbury Nigeria declined by 74 kobo to close at N14.15. Flour Mills of Nigeria depreciated by 43 kobo to close at N19.77. Ecobank Transnational Incorporated (ETI) lost 28 kobo to close at N10.53 while Union Bank of Nigeria and E-Tranzact dropped by 24 kobo each to close at N4.75 and N4.65 respectively.
Total turnover stood at 154.16 million shares valued at N 1.62 billion in 2,510 deals. Banking stocks were the most active stocks. ETI was the most active with a turnover of 81.64 million shares worth N865.42 million. FBN Holdings staged a distant second with 10.57 million shares valued at N31.96 million while United Bank for Africa recorded a turnover of 7.38 million shares worth N31.15 million.
“Given the recent pattern of weak market breadth amidst below-trend trading volumes, we expect appetite for equities to remain soft as investors clearly have conservative outlook on earnings. Nonetheless, short term traders might take advantage of bargain opportunities in the session ahead as the benchmark index is currently at a month-low,” Afrinvest Securities stated.
On the positive side, Total Nigeria led the 13-stock gainers’ list with a gain of N14.47 to close at N303. Beta Glass rose by N1 to close at N31. Nigerian Breweries gained 95 kobo to close at N145. PZ Cussons Nigeria added 40 kobo to close at N18.40. Okomu Oil Palm rallied 39 kobo to close at N40.50 while Lafarge Africa gathered 33 kobo to close at N42.70 per share.
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