Nigerian equities recorded its worst decline in seven weeks on Tuesday as low demand combined with considerable profit-taking transactions to shave off N125 billion from market values of quoted equities. With 32 decliners to 12 advancers, the overall market situation at the Nigerian Stock Exchange (NSE) was obviously negative.
As against the rally in the previous two trading sessions, benchmark indices at the stock market showed average day-on-day decline of 0.96 per cent on Tuesday, equivalent to net capital loss of N125 billion. The decline pressured the average year-to-date return to 37.50 per cent.
The All Share Index –the value-based common index that tracks prices at the NSE dropped to 36,953.41 points as against its opening index of 37,312.28 points. Aggregate market value of all quoted equities also declined to N12.789 trillion as against its opening value of N12.914 trillion.
Nearly all sectoral indices closed in the red, with the exception of the NSE Oil and Gas Index, which inched up by 0.1 per cent. The NSE Industrial Goods Index and NSE Banking Index dropped by 1.4 per cent each. The NSE Consumer Goods Index declined by 1.3 per cent while the NSE Insurance Index dipped by 0.1 per cent.
Nigeria’s highest-priced stock, Nestle Nigeria, led the decliners with a loss of N40 to close at N1,250. Guinness Nigeria dropped by N2.01 to close at N100. Unilever Nigeria declined by N2 to close at N38. Lafarge Africa and Dangote Cement lost N1.45 each to close at N50 and N236.55. Zenith Bank declined by N1.16 to close at N23.68. PZ Cussons Nigeria dropped by 60 kobo to close at N22.40. Cadbury Nigeria lost 53 kobo to close at N11.78. Dangote Flour Mills dropped by 30 kobo to close at N9.15 while Eterna dipped by 20 kobo to close at N3.99 per share.
On the upside, Flour Mills of Nigeria led the advancers with a gain of 89 kobo to close at N34.89. Nigerian Breweries followed with a gain of 77 kobo to close at N139.75. Forte Oil appreciated by 65 kobo to close at N48.62. Okomu Oil Palm added 21 kobo to close at N68.20 per share. Nigerian Aviation Handling Company rose by 17 kobo to close at N3.72. Vitafoam Nigerian gained 14 kobo to close at N2.95 while Fidson Healthcare gathered 13 kobo to close at N3.90 per share.
Total turnover stood at 238.36 million shares valued at N3.42 billion in 4,238 deals. Banking stocks dominated the activities chart. FBN Holdings was the most active stock with 75.8 million shares valued at N541.28 million. Diamond Bank followed with 33.82 million shares worth N37.64 million while Stanbic IBTC Holdings occupied the third position with 14.42 million shares valued at N613.96 million.
“Following the day’s unprecedented loss, we expect bargain hunting to drag market performance positive in subsequent trading sessions,” Afrinvest Securities stated.
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