The downtrend that opened the Nigerian stock market this week worsened on Tuesday as investors dumped shares in several highly capitalised banking, manufacturing and oil and gas companies. The benchmark index at the stock market indicated a decline of 1.36 per cent, equivalent to a loss of N115 billion.
With two decliners to every gainer, aggregate market value of all quoted equities on the Nigerian Stock Exchange (NSE) dropped from N8.400 trillion to close at N8.285 trillion. The All Share Index (ASI)-the value-based index that tracks prices of all quoted equities, declined from 24,423.37 points to close at 24,090.98 points.
The steep decline worsened the average year-to-date return at the stock market to -15.89 per cent.
Sectoral analysis indicated mixed performance across the sectors. The NSE Banking Index dipped by 1.0 per cent. The NSE Industrial Goods Index dropped by 0.5 per cent while the NSE Oil & Gas Index declined by 0.3 per cent. On the other hand, the NSE Consumer Goods Index grew by 0.4 per cent while the NSE Insurance Index rose by 0.2 per cent.
“We expect the market to continue to trade sideways as investors take strategic position in dividend paying stocks ahead of the earnings season while taking advantage of irregular price movements,” Afrinvest Securities, a Lagos-based dealer on the NSE, stated.
Highly capitalised stocks orchestrated the decline on Tuesday. Dangote Cement, NSE’s most capitalised stock, recorded the highest loss of N6.83 to close at N133. Mobil Oil Nigeria followed with a loss of N1 to close at N149. Ecobank Transnational Incorporated declined by 60 kobo to close at N15. UAC of Nigeria lost 47 kobo to close at N20. Cadbury Nigeria dropped by 36 kobo to close at N17.50. Oando slipped by 17 kobo to close at N3.30. Champion Breweries lost 14 kobo to close at N2.71 while FBN Holdings and Diamond Bank dropped by 11 kobo each to close at N3.63 and N1.38 respectively.
On the positive side, Lafarge Africa led the gainers with a gain of N4.02 to close at N84.52. Seven-Up Bottling Company rose by N3 to close at N171.50. Nigerian Breweries added N1.05 to close at N100.05. Nascon Allied Industries gathered 14 kobo to close at N7 while Custodian and Allied added 10 kobo to close at N4.10 per share.
Total turnover stood at 201.72 million shares worth N1.26 billion in 2,565 deals. FBN Holdings was the most active stock with a turnover of 66.62 million shares worth N246.95 million. Beco Petroleum followed with a turnover of 25 million shares worth N12.5 million while Guaranty Trust Bank placed third with a turnover of 15.93 million shares valued at N263.54 million.
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