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NSE LIVE! Equities lose N33bn on FMCGs selloff

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NSE LIVE! Equities lose N33bn on FMCGs selloff

Nigerian equities set again into its topsy-turvy pattern on Tuesday as a considerable selloff within the fast moving consumer goods (FMCGs) companies reversed the net gain of N17 billion recorded on Monday with a net capital loss of N33 billion.

Losses recorded by highly capitalised FMCGs stocks such as Nestle Nigeria, Nigerian Breweries, Seven-Up Bottling Company and Guinness Nigeria orchestrated the negative overall performance on Tuesday. Many analysts expected earnings within the FMCGs to drop in the immediate period due to the tough macroeconomic environment that has seen decline in sales amidst rising cost of operations.

Aggregate market value of all quoted equities on the Nigerian Stock Exchange (NSE) declined by N33 billion from N9.075 trillion to close at N9.042 trillion. The All Share Index (ASI), the value-based common index that tracks prices at the Exchange, also dropped by 0.36 per cent from 26,373.83 points to close at 26,278.20 points. With this, the average year-to-date return stood at -2.22 per cent.

Sectoral indices showed the sell pressure in the FMCGs sector. The NSE Consumer Goods Index dropped by 1.5 per cent while the NSE Oil & Gas Index declined by 0.3 per cent. On the other hand, the NSE Insurance Index rose by 0.38 per cent. The NSE Industrial Goods Index added 0.04 per cent while the NSE Banking Index inched up by 0.02 per cent.

Read also: NSE LIVE! Equities net N17b gain as investors scramble for banks

Nestle Nigeria, the highest-priced company at the Exchange, led the 21-stock losers’ list with a loss of N29 to close at N761. Seven-Up Bottling Company dropped by N5.35 to close at N101.65. Forte Oil lost N3.28 to close at N70.30. Guinness Nigeria declined by N2.99 to close at N67. Nigerian Breweries, the second most capitalised quoted company in Nigeria, dropped by 80 kobo to close at N141.20. Ecobank Transnational Incorporated lost 42 kobo to close at N9.72 while UAC of Nigeria declined by 40 kobo to close at N16.30 per share.

Total turnover stood at 371.86 million shares valued at N1.71 billion in 3,522 deals. Banking stocks continued to dominate the activities chart. Fidelity Bank was the most active stock with 107.99 million shares valued at N99.9 million. Continental Reinsurance followed with 43.07 million shares worth N47.25 million while Diamond Bank recorded 37.49 million shares valued at N45.68 million.

On the positive side, Mobil Oil Nigeria led the gainers with a gain of N6.91 to close at N262. Presco followed with a gain of N1.79 to close at N43.95. PZ Cussons (Nigeria) added 46 kobo to close at N14.25. Cement Company of Northern Nigeria rose by 20 kobo to close at N4.35 while United Capital garnered 14 kobo to close at N3.50 per share.

“We expect a mixed market mood at tomorrow (Wednesday)’s trading session. However, we reiterate that the current valuations still provides an attractive entry points for risk tolerant investors,” SCM Capital, a Lagos-based broker at the Exchange, stated.

 

 

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