Equities Market in Two-day Loss, 20 Stocks Depreciate

• Equities Market in Two-day Loss, 20 Stocks Depreciate

The Nigerian equities market closed on a negative note on Wednesday after market index went down on Tuesday.

The Nigerian Stock Exchange All-Share Index dropped again by 0.13 per cent as key sectors closed in the red zone.

The NSE market capitalisation slid to N9.03tn from N9.041tn, while the NSE ASI closed at 26,245.34 basis points from 26,278.20 basis points.

A total of 394.820 million shares valued at N1.378bn exchanged hands in 3,051 deals.

The banking sector continued the mixed trading but finally settled lower as the stocks of Diamond Bank Plc, FBN Holdings Plc, Ecobank Transnational Incorporated and Zenith Bank Plc declined by 4.8 per cent, 0.55 per cent, 0.31 per cent and 0.19 per cent, respectively.

Losses across Guinness Nigeria Plc, Unilever Nigeria Plc, Cadbury Nigeria Plc and Nestle Nigeria Plc ensured the consumer goods sector extended its negative run to twelve sessions.

The oil/gas sector also remained in the red following declines in the shares of Forte Oil Plc, Oando Plc and Mobil Oil Nigeria Plc by 1.85 per cent, 0.63 per cent and 0.57 per cent, respectively.

However, the industrial goods sector was relatively unchanged as Cutix Plc rebounded by 2.11 per cent from its recent downtrend while Portland Paints and Products Nigeria Plc slipped by five per cent likely on the back of investor reaction to its announcement of a one for three rights issue, which was offered at a five per cent discount to its market value.

Market breadth remained negative with 12 advances and 20 declines.

Following the outcome of trading on Wednesday, analysts at Vetiva Capital Management Limited said, “Considering the widening negative market breadth, weakening bid for banking stocks (amid profit taking) and the persistent bearish bias across other key sectors, we foresee another bearish trading session.”

On the global front, while Asian markets traded mostly higher amid dollar volatility, European markets were mixed as investors digested a host of corporate earnings. The United States futures predicted a higher open as investors eye a speech by the US Fed Chair- Yellen Janet and the release of a stream of economic data, chief of which is the Consumer Price Index.