NSE LIVE! Equities stumble further amidst large sales

In from Success Allantee …
Nigerian equities suffered a third day of consecutive decline yesterday as more investors piled up sales orders, forcing the overall market position down by 0.50 per cent. The widespread selling pressure shaved off N54 billion from market capitalisation and raised the negative average year-to-date return at the Nigerian Stock Exchange (NSE) to -9.77 per cent.
The All Share Index (ASI), the benchmark index that tracks prices of all quoted equities at the NSE, dropped by 0.50 per cent from its opening index of 31,427.68 points to close at 31,269.71 points. Aggregate market value of all quoted companies closed lower at N10.718 trillion as against its opening value of N10.772 trillion, a loss of N54 billion.
With nearly two losers to every gainer, the market performance was worsened by about 92 per cent increase in turnover volume as more investors opted for open market orders that effectively turned the market into a buyers’ market. In a buyer’s market, the buyer dictates the price, and reasonably it will be a lower price.
Nigerian Breweries, NSE’s second most capitalised stock, led the 27-stock losers’ list with a drop of N5.50 to close at N126. Conoil followed with a drop of N3.59 to close at N33.28. CAP lost N1.89 to close at N36.06. Dangote Cement, the market’s most capitalised stock, dropped by N1 to close at N184. Cement Company of Northern Nigeria declined by 75 kobo to close at N8.75. Nigerian-German Chemicals dropped by 61 kobo to close at N5.71. Nascon Allied Industries dwindled by 32 kobo to close at N6.48. Transnational Corporation of Nigeria slipped by 23 kobo to N2.43 while Eterna and Red Star Express lost 21 kobo each to close at N2.02 and N4.16 respectively.
“We expect the market to be suppressed further at tomorrow`s trading session due to lack of positive news flow to reverse the current mood,” SCM Capital stated in post-trading review.
Turnover rose considerably with the exchange of a total of 280.99 million shares valued at N2.91 billion in 3,724 deals. Financial services sector remained the most active with a turnover of 242.57 million shares worth N1.75 billion in 2,293 deals.

Read also: NSE LIVE! Equities under selling pressure as market opens to low trade

On stock by stock basis, United Bank for Africa was the most active stock with a turnover of 89.64 million shares worth N363.4 million in 190 deals. Access Bank followed with a turnover of 58.94 million shares worth N279.3 million in 186 deals. Zenith Bank placed third with a turnover of 33.80 million shares worth N562.63 million in 342 deals.
“We believe today’s performance remained primarily driven by speculations on key counters in the market. Hence, we advise investors to maintain a medium to long term investment horizon,” analysts at Afrinvest Securities said.
On the upside, Nestle Nigeria, NSE’s highest-priced stock, led the gainers with a gain of N14.99 to close at N865. Flour Mills of Nigeria followed with a gain of N2.60 to close at N29.50. Seven-Up Bottling Company rose by N1 to close at N195. Forte Oil added 98 kobo to close at N204.98. UAC of Nigeria gathered 75 kobo to close at N37 while Northern Nigeria Flour Mills rose by 50 kobo to close at N13.50 per share.

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