NSE LIVE! Equities’ return worsens on 9th negative trade

In from Success Allantee…

The Nigerian equities market opened this week with a loss of N33 billion or 0.32 per cent, extending the losing streak that has so far ruled the second half to the ninth consecutive trading session.

The All Share Index (ASI), the value-based general index that tracks prices of all quoted stocks on the Nigerian Stock Exchange (NSE), dropped to 31,628.20 points as against its opening index of 31,729.26 points. Total market value of all quoted companies on the NSE also dropped from N10.835 trillion to close at N10.802 trillion. The downtrend further depressed the average year-to-date return at the NSE to -8.74 per cent.

Analysts at Afrinvest Securities attributed the decline to what they described as “weak sentiment” at the stock market, adding that investor sentiments towards the Nigerian equities market have remained negative.

“The bearish mood is expected to continue tomorrow as investors remained cautious on taking new positions,” said analysts at SCM Capital in another post-trading review.

The overall market situation was overwhelmed by the preponderance of shares supply amidst low demand by investors who were uncertain about the macroeconomic outlook and the prospects for quoted companies.

With nearly three decliners to every gainer, the market sentiments had defied earlier expectations that impending release of first-half earnings reports and increasing undervaluation of quoted stocks would lift the market. The market has traded so far this second half on the negative side.

Losses by highly capitalised stocks further worsened the widespread selling sentiments, overwhelming the possible positive lift from considerable gain recorded by Dangote Cement, which controls about one-quarter of market value. Nestle Nigeria, the highest-priced stock at the stock market, led the 30-stock losers’ list with a drop of N10 to close at N840. Nigerian Breweries, the second most capitalised stock, dropped by N2.21 to close at N134.30. Flour Mills of Nigeria lost N1.61 to close at N30.69. Mobil Oil Nigeria declined by N1 to close at N147. MRS Oil lost 88 kobo to close at N49.66. Oando slipped by 72 kobo to close at N13.96. Ecobank Transnational Incorporated dropped by 55 kobo to close at N20.45. Okomu Oil Palm dropped by 50 kobo to N28 while Union Bank of Nigeria and Computer Warehouse Group lost 44 kobo and 19 kobo to close at N8.47 and N3.79 respectively.

Total turnover stood at 263.36 million shares worth N5.47 billion in 3,053 deals. Financial services sector accounted for 203.34 million shares valued at N3.16 billion in 1,691 deals. Zenith Bank was the most active stock with a turnover of 150.39 million shares worth N2.85 billion in 170 deals. Transnational Corporation of Nigeria occupied a distant second position with 17.07 million shares worth N42.3 million in 125 deals.

On the positive side, Seplat Petroleum Development Company led 10 other stocks on the gainers’ list, adding N4.89 to close at N335. Dangote Cement rose by N1.70 to close at N170. UAC of Nigeria added N1.29 to close at N41.30. Caverton Offshore Services Group rose by 13 kobo to N3.55 while Unity Bank and Portland Paints and Products Nigeria chalked up 11 kobo and 10 kobo to close at N2.46 and N5.10 respectively.

Read also: NSE LIVE! Stock Exchange delists three companies

Ripples… without borders, without fears

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now