NSE LIVE! Equities remain underweight with blue chips losses

Nigerian equities continued to show widespread buying sentiments but share price losses recorded by some highly capitalised stocks continued to undermine the overall market position.

Continuing on the same trend that started on Tuesday, transactions at the Nigerian Stock Exchange (NSE) on Wednesday were shaped by bargain-hunting for value stocks, especially low-priced financial services stocks. However, the portfolio adjustments affected a handful of large-cap stocks negatively affected the key indices at the Exchange.

While there were 21 gainers to 13 losers, aggregate market value of all quoted equities at the NSE still dropped by N48 billion from N8.791 trillion to close at N8.743 trillion. The All Share Index (ASI)- the main index for the market, also declined by 0.55 per cent to close at 25,267.68 points as against its opening index of 25,406.72 points.

The consecutive decline further depressed the average year-to-date return to -5.98 per cent.

Read also: NSE LIVE! High-cap stocks drag equities down

The decline in overall market position was largely due to dividend-payment adjustment for Guaranty Trust Bank (GTB) and price depreciation suffered by large-cap stocks such as Mobil Oil Nigeria, FBN Holdings, Unilever Nigeria, and Oando.

Mobil Oil Nigeria led the losers with a loss of N2.25 to close at N295. Unilever Nigeria followed with a loss of N1.90 to close at N32. GTB declined by N1.75 to close at N25.20. Oando dropped by 25 kobo to close at N4.83. Custodian and Allied lost 15 kobo to close at N3.21 while FBN Holdings dropped by 8.0 kobo to close at N3.03 per share.

Meanwhile, most changing stocks closed on the upside. Total Nigeria led the gainers with a gain of N9.98 to close at N269.98. Forte Oil followed with a gain of N2 to close at N47. Guinness Nigeria rose by 73 kobo to close at N60.80. Transcorp Hotels added 46 kobo to close at N5.04 while UAC of Nigeria gathered 31 kobo to close at N13.30 per share.

Total turnover stood at 771.65 million shares valued at N2.62 billion in 2,703 deals. Insurance stocks were the most active stocks. Custodian and Allied was the most active with 284.53 million shares. Continental Reinsurance followed with 250.71 million shares while Diamond Bank placed third with 127.27 million shares.

Analysts said the sustained broad price appreciation implied improving investors’ appetite for quoted equities, which may outweighed the profit-taking on few stocks in the next trading sessions.

 

 

 

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