NSE LIVE! Equities’ losing streak worsens with N272b loss

In from Success Allantee …
Nigerian equities on Monday extended its recent losing streak to the seventh consecutive trading session with a whooping loss of N272 billion. With nearly six decliners to every gain, the negative market sentiments sent the benchmark index below the 30,000 psychological mark, creating confusion and near-panic in the marketplace.
Investors went wholesale for open-market orders as they jostled to exit several stocks, most of which had been rated to be trading below their intrinsic values. The All Share Index (ASI), the benchmark index at the Nigerian Stock Exchange (NSE), crashed by 2.59 per cent to 29,909.44 points as against its opening index of 30,705.62 points.
Aggregate market value of all quoted companies on the NSE also nosed down from N10.524 trillion to N10.252 trillion, representing a loss of N272 billion. The steep decline further worsened the negative average year-to-date return to -13.70 per cent. Adjusted for inflation at 9.2 per cent, inflation-adjusted simple return now stands at -22.9 per cent.
With 41 losers to seven gainers, the negative market situation reflected both the wide spread of the selling sentiments and significant losses recorded by several market-leading stocks, including the two most capitalised stocks-Dangote Cement and Nigerian Breweries. Sectoral leaders across the sectors also came under heavy shelling as investors resorted to selling the highly liquid shares under the weight of unmatched orders for less liquid stocks.
Total turnover surged above average with the exchange of 476.36 million shares valued at N3.65 billion in 3,845 deals.
Analysts at Afrinvest Securities said the investors’ sentiments towards the market “showed no signs of improvement”, describing the battered market yesterday as “a sea of red”. While most analysts agreed that the continued depreciation has raised significant opportunity for long-term investors, many analysts were skeptical about the immediate resurgence of the market.
“Given the continuous bearish run in the market, some value stocks have depreciated to relatively low prices which continually portend an attractive upside to investors with medium to long term horizon,” Afrinvest Securities stated.
Managing Director, Continental Reinsurance Plc, Mr. Femi Oyetunji, said the Nigerian stock market still has potential for considerable rebound in the latter part of this year.
According to him, clearer macroeconomic direction and global attention to the Nigerian market could spur a rebound going forward.
Nestle Nigeria, NSE’s highest-priced stock, topped the losers’ list with a loss of N16 to close at N842. Seplat Petroleum Development Company followed with a drop of N14.25 to close at N270.75. Dangote Cement, Nigeria’s most capitalised quoted company, declined by N9.02 to close at N171.48. Nigerian Breweries dropped by N4.92 to close at N122.01. Total Nigeria lost N4 to close at N154. Mobil Oil Nigeria declined by N2.80 to close at N151.20. GlaxoSmithKline Consumer Nigeria slipped by N2 to close at N38. Cadbury Nigeria declined by N1.66 to close at N31.64 while Flour Mills of Nigeria dripped by N1.39 to close at N26.64 per share.
Meanwhile, Forte Oil led the contrarian stocks with a gain of N4.98 to close at N219.98. Zenith Bank and Transnational Corporation of Nigeria gained 37 kobo and 12 kobo to close at N16.45 and N2.69 respectively.

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