NSE LIVE! Equities lose N153bn amidst continuing selloffs

Most transactions at the Nigerian stock market were closed on Wednesday at a discount as a scramble for exit by profit-takers continued to pressure the market to negative closing. For the third consecutive trading session, most indices at the Nigerian Stock Exchange (NSE) were in the red as investors increasingly sought to monetise their capital gains.

With four decliners to every advancer, the market posted an average return of -0.96, equivalent to a net capital loss of N153 billion within the five-hour trading session. The average year-to-date return for the equities market thus slipped to 14.96 per cent.

The All Share Index (ASI)-the common value-based index that tracks share prices at the Exchange, declined from its opening index of 44,389.85 points to close at 43,963.40 points. Aggregate market value of all quoted equities also dropped from its opening value of N15.903 trillion to close at N15.760 trillion.

The difference in the rate of change between the ASI and aggregate market capitalisation was due to the supplementary listing of 67.80 million ordinary shares by Nigerian Breweries Plc.

With 43 decliners to 11 advancers, most sectoral indices also closed negative. The NSE Banking Index led the downtrend with a drop of 3.1 per cent. The NSE Insurance Index followed with a drop of 1.9 per cent while the NSE Oil & Gas Index depreciated by 0.1 per cent. However, the NSE Consumer Goods Index and NSE Industrial Goods Index appreciated by 0.5 per cent each.

Large-cap banking stocks led the decliners, underlining the strong profit-taking tendency in the banking sector, which had more than doubled the average gain by other sectors in the previous year and during the recent rally. Nigeria’s most capitalised banking stock, Guaranty Trust Bank led the decliners with a loss of N1.10 to close at N50.90. Zenith Bank, the second most capitalised stock, followed with a drop of N1 to close at N31. Cadbury Nigeria declined by 98 kobo to close at N15.01. FBN Holdings lost 52 kobo to close at N12.50. Access Bank, Berger Paints and Nascon Allied Industries slipped by 50 kobo each to close at N12.20, N9.58 and N19.50 respectively. Unilever Nigeria lost 41 kobo to close at N46. Julius Berger Nigeria declined by 40 kobo to close at N30 while Ecobank Transnational Incorporated dropped by 39 kobo to close N19.81 per share.

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On the upside, Nestle Nigeria-Nigeria’s highest priced stock, led the advancers with a gain of N3.89 to close at N1,475. Nigerian Breweries followed with a gain of N2.99 to close at N147.99. Cement Company of Northern Nigeria rose by 60 kobo to close at N17.90. Lafarge Africa appreciated by 52 kobo to close at N52.50. PZ Cussons Nigeria chalked up 29 kobo to close at N23.79 while May & Baker Nigeria added 14 kobo to close at N2.97 per share.

Total turnover further slowed down with the exchange of 536.43 million shares valued at N5.18 billion in 7,370 deals.  Transnational Corporation of Nigeria was the most active stock with a turnover of 91.04 million shares worth N178.15 million. Skye Bank followed with 83.26 million shares worth N117.49 million while FBN Holdings recorded a turnover of 60.67 million shares worth N754.42 million.

“Market breadth and investor sentiments remained weak as there was continued sell pressure that resulted in a number of stocks on offer. With the sustained profit taking recorded this week, a rebound in the market is likely as the outlook remains positive,” FSDH Securities stated in a post-trading note.

“Following three consecutive days of sustained profit taking by investors, we do not rule out the possibility of some bargain hunting in subsequent trading sessions,” Afrinvest Securities concluded.

 

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