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NSE LIVE! Equities’ return worsens as inflation rises



NSE LIVE! Banks hard hit as equities lose N2.79tn in 11 months

Average return on the Nigerian equities worsened to -9.27 per cent on Monday as the stock market reopened to continuing selloff.

The National Bureau of Statistics (NBS) also on Monday announced that Consumer Price Index (CPI), which measures inflation, increased to 18.33 per cent in October 2016 as against 17.85 per cent recorded in September 2016. This implies inflation-adjusted return of -27.6 per cent for the stock market.

The All Share Index (ASI), the benchmark index for the stock market, indicated average day-on-day decline of 0.70 per cent, equivalent to a loss of N63 billion. With this, average year-to-date return worsened to -9.27 per cent.

Aggregate market value of all quoted equities dropped from its opening value of N9.009 trillion to a new low of N8.946 trillion. The ASI also declined from 26,170.88 points to close at 25,986.81 points. Sectoral indices at the Exchange showed a largely negative market situation across the sectors.

The NSE Oil & Gas Index dropped by 2.4 per cent. The NSE Banking Index declined by 2.1 per cent. The NSE Consumer Goods Index slipped by 0.3 per cent while the NSE Industrial Goods Index dropped by 0.2 per cent. However, the NSE Insurance Index played the contrarian with a gain of 0.6 per cent.

Forte Oil led the 22-stock losers’ list with a loss of N10.18 to close at N94.32. CAP followed with a loss of N1.65 to close at N33.75. Guinness Nigeria dropped by N1 to close at N89. PZ Cussons Nigeria lost 72 kobo to close at N15.77 while Zenith Bank declined by 63 kobo to close at N14.50 per share.

Read also: Cost of living soars as inflation spikes up to 18.3%

On the positive side, UAC of Nigeria led the 10-stock gainers’ list with a modest gain of 9.0 kobo to close at N17.76. Access Bank followed with a gain of 6.0 kobo to close at N5.36. May & Baker Nigeria rose by 4.0 kobo to close at 89 kobo. AXA Mansard Insurance added 3.0 kobo to close at N1.87 while FBN Holdings, Wapic Insurance and Livestock Feeds inched up by 2.0 kobo to close at N3.07, 52 kobo and 82 kobo respectively.

Total turnover stood at 160.9 million shares valued at N1.12 billion in 2,431 deals. Low-priced stocks continued to dominate activities’ chart. MTI was the most active with a turnover of 33 million shares valued at N16.5 million, United Bank for Africa (UBA) followed with 23.3 million shares worth N100.23 million while Wema Bank placed third with 10.51 million shares valued at N6.62 million.

“We expect market performance to remain soft in subsequent trading sessions; nevertheless, we do not rule out bargain hunting towards the end of the week,” Afrinvest Securities, a Lagos-based dealer on the Exchange, stated.



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