Nigerian Stock Exchange Drops N180bn in One Day

Forex Market
  • Nigerian Stock Exchange Drops N180bn in One Day

The capitalisation of the Nigerian Stock Exchange fell by N180bn at the close of trading on the floor of the Exchange on Tuesday.

The NSE capitalisation closed at N9.075tn from N9.255tn recorded on Monday, while the All-Share Index dropped to 26,364.27 basis points from 26,887.54 basis points.

A total of 189.009 million shares worth N1.6bn were traded in 3,434 deals.

The NSE ASI plunged to a fresh five-month low, recording its largest daily loss since Q3, following renewed pressure on cement stocks. The uncertainty of the United States Presidential election continued to shape global markets with indices trending in varying directions.

The Industrial Sector Index posted its largest daily decline in the last four months, following sizeable declines across cement stocks – Lafarge Africa Plc dropped by 4.99 per cent, Cement Company of Northern Nigeria Plc dropped by 4.86 per cent and Dangote Cement Plc dropped by 4.88 per cent.

The financial services and oil/gas sectors also closed under water following declines across Guaranty Trust Bank Plc by 2.1 per cent, Zenith Bank Plc by 1.15 per cent, Forte Oil Plc by five per cent and Oando Plc by 1.86 per cent.

The consumer goods sector was the gainer in Tuesday’s session as Nigerian Breweries Plc gained 1.41 per cent, outweighing declines across Champion Breweries Plc and UACN Plc by 9.47 per cent and five per cent, respectively

Market breadth remained negative with 13 advances and 31 declines.

Commenting on the market performance, analysts at Vetiva Capital Management Plc said, “Tuesday’s market performance revealed that investor sentiment remained bearish. We expect the ASI to sustain its downtrend given the sustained pressure across board.”

Meanwhile, the interbank call rate advanced by 67 basis points to 13.67 per cent amid relatively unchanged system liquidity. At the foreign exchange interbank market, the naira rebounded from a historic low, appreciating N44.95 against the dollar to close at N305.27. The one year forward rate increased by N27.64 to close at N348.64.

About the Author

Samed Olukoya
Samed Olukoya is the CEO/Founder of investorsking.com, a digital business media, with over 10 years' experience as a foreign exchange research analyst and trader. A graduate of University of East London, U.K. and a vivid financial markets analyst.

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