Nigerian equities recorded net capital loss of N10 billion on Monday as increased bargain-hunting and caution highlighted anxieties over expected worsening inflation rate and weak corporate earnings and attraction of substantially undervalued stocks.
The momentum of the downtrend slowed down on Monday as sectoral indices showed sustained bargain-hunting in many stocks. Sectoral indices indicated mixed performance with gains in the financial services and industrial goods stocks counterbalancing losses in the consumer goods and oil and gas stocks.
The All Share Index (ASI), the main index that tracks prices at the Nigerian Stock Exchange (NSE), declined by 0.11 per cent from 27,425.86 points to close at 27,394.98 points. Aggregate market value of all quoted equities dropped from N9.419 trillion to close at N9.409 trillion, indicating a loss of N10 billion.
The NSE Consumer Goods Index declined by 1.1 per cent while the NSE Oil & Gas Index dropped by 0.5 per cent. On the other hand, the NSE Banking Index rose by 1.3 per cent, the NSE Insurance Index advanced by 0.6 per cent while the NSE Industrial Goods Index inched up 0.2 per cent. The sustained decline worsened the average year to date return to -4.35 per cent.
Total Nigeria led the 18-stock losers’ list with a loss of N12.07 to close at N229.95. Nigerian Breweries, the second most capitalized stock, dropped by N3.03 to close at N130. MRS Oil declined by N2.13 to close at N40.60. Flour Mills of Nigeria lost N1.98 to close at N20. Seven-Up Bottling Company dipped by 70 kobo to close at N119.50.
Stanbic IBTC Holdings dropped by 60 kobo to close at N13.30. Berger Paints dropped by 38 kobo to close at N7.25. Ecobank Transnational Incorporated dropped by 28 kobo to close at N11.54. Dangote Flour Mills declined by 23 kobo to close at N4.15 while Custodian and Allied Insurance dropped by 19 kobo to close at N3.80 per share.
Total turnover was below recent average with the exchange of 118.37 million shares valued at N1.27 billion in 2,899 deals. Banking stocks dominated the activities chart. The three most active stocks were FBN Holdings, with 32.86 million sharesvalued at N108.52 million; Access Bank, with 17.11 million shares with N95.42 million and Fidelity Bank, which recorded a turnover of 8.39 million shares valued at N8.80 million.
“Performance is likely to stay weak in the absence of cheery news in the market but we believe sustained sell pressure may trigger bargain hunting in the short term,” Afrinvest Securities stated.
On the positive side, Seplat Petroleum Development Company led the 15-stock gainers with a gain of N7.40 to close at N250. Guaranty Trust Bank added 84 kobo to close at N23.95. Lafarge Africa rose by 35 kobo to close at N51.50.
Dangote Sugar Refinery gathered 33 kobo to close at N6.98. Access Bank rose by 12 kobo to close at N5.60 per share. Airlines Services and Logistics chalked up 8.0 kobo to close at N2.17 while FCMB Group inched up by 7.0 kobo to close at N1.34 per share.
RipplesNigeria …without borders, without fears