NSE LIVE!… Equities dwindle under selling pressure

in from Success Alantee…

For every six price changes, almost five ended in losses as the tight trades at the Nigerian Stock Exchange (NSE) yesterday turned into obvious downtrend.

With 42 decliners to nine advancers, the overall market situation at the stock market yesterday was overwhelmingly that of a buyers’ market, with selling investors opting for open market orders to match the available buy orders.

The selling pressure was highlighted by the simultaneous increase in turnover and widespread decline in share prices. Aggregate market value of all quoted equities dropped by N39 billion from N11.395 trillion to close at N11.356 trillion. The All Share Index (ASI), Nigeria’s sovereign equity index that tracks prices of all quoted equities, fell by 0.34 per cent to close at 33,266.87 points as against its opening index of 33,380.84 points.

“We expect the current bearish mood to continue,” said SCM Capital, a dealing firm at the NSE.

The downtrend yesterday further depressed the average year-to-date return to -4.01 per cent, strengthening expectations that the equities market may close the first half in the negative.

Turnover volume and value increased by 49 per cent and 173 per cent respectively as investors pumped more shares into the weak market. Turnover rose above average at 310.34 million shares valued at N6.12 billion in 3,667 deals. Financial services sector accounted for 194.29 million shares worth N1.54 billion in 2,104 deals.

Julius Berger Nigeria, which is undergoing a major divestment by its foreign core investor, topped the losers’ list with a loss of N2.61 to close at N49.78. Conoil followed with a drop of N1 to close at N41. International Breweries dropped by 73 kobo to close at N19.07. Forte Oil declined by 66 kobo to close at N187.99. Flour Mills of Nigeria lost 63 kobo to close at N33.57. University Press and Stanbic IBTC Holdings dropped by 60 kobo each to close at N5.90 and N27.40. Cement Company of Northern Nigeria dwindled by 58 kobo to N11.02. Ecobank Transnational Incorporated dropped by 49 kobo to N22 while Guinness Nigeria lost 40 kobo to close at N163.40 per share.

On the other hand, Mobil Oil Nigeria meanwhile led the contrarian upside stocks with a gain of N5.54 to close at N158.85. Ashaka Cement followed with a gain of 50 kobo to close at N22. Unilever Nigeria rose by 33 kobo to close at N45.50. Vitafoam Nigeria added N14 kobo to close at N5.63. Skye Bank Nigeria rose by 12 kobo to close at N2.55 while Neimeth International Pharmaceuticals gathered 11 kobo to close at N1.45 per share.

Julius Berger Nigeria was the most active stock with 46.33 million shares valued at N2.39 billion in 17 deals.

Ripples.com.ng had reported recently that Bilfinger SE, the foreign majority investor in Julius Berger Nigeria, has concluded to sell its entire equity stake in the Nigerian company on or before the end of this month, in a deal that was valued at about N23.1 billion.

Bilfinger SE, which holds 33.4 per cent in Julius Berger Nigeria, has decided to sell its remaining and final equity stake in the company.

A regulatory document indicated that Bilfinger SE has already informed the Nigerian directors of Julius Berger Nigeria of the decision to dispose the equity stake on or before the end of this month.

The equity sale, according to emerging details, will be offered to long-term Nigerian investors and will lead to the exit of the representative of Bilfinger SE from the board of Julius Berger Nigeria.

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