- Investors Sell Off Shares After Yuletide Celebration
As businesses opened on Wednesday after the Yuletide holiday on Monday and Tuesday, investors in the Nigerian equities market started the week on a negative note as share sell-offs characterised trading.
The Nigeria Stock Exchange market capitalisation dropped by N225bn to close at N13.483tn from N13.708tn recorded on Friday.
A total of 425.959 million shares worth N2.121bn exchanged hands in 2,937 deals.
The equities market recorded a 1.6 per cent decline at the end of trading on Wednesday to buck a three-day gaining streak; thus, paring the benchmark index year-to-date return to 41 per cent.
Dangote Cement Plc was the major drag to performance after it shed 3.9 per cent; although selling pressure were also observed in large-cap stocks within the consumer goods, banking and agriculture sectors. However, activity level waxed stronger as volume and value rose by 103.9 per cent and 37.9 per cent to N416.9bn and N2.1bn, respectively.
Sector performance was mixed as three of the five major NSE indices closed in the red. The industrial goods index led the losers chart, plunging by 2.6 per cent on account of sell-offs in Dangote Cement while the consumer goods index trailed, closing 1.2 per cent lower, following price depreciation in Nigerian Breweries Plc, which declined by 4.3 per cent.
Similarly, the banking index lost 0.3 per cent — pressured by Ecobank Transnational Incorporated and United Bank for Africa Plc, which shed 2.8 per cent and 0.8 per cent, accordingly.
On the other hand, the insurance index closed one per cent higher as investors positioned in NEM Insurance Nigeria Plc and Axa Mansard Insurance Plc, which gained four per cent and 0.5 per cent, accordingly, while the oil/gas index gained 0.5 per cent, solely on account of Mobil Nigeria Plc, which appreciated by 4.9 per cent.
Investor sentiment weakened as indicated by market breadth which retreated as 14 stocks gained while 23 declined.
Cadbury Nigeria Plc, Mobil Nigeria Plc and Fidelity Bank Plc topped the gainers’ chart, appreciating by 9.9 per cent, 4.9 per cent and 4.6 per cent, respectively while Okomu Oil Palm Plc, Presco Plc and Nigerian Breweries led the losers’ chart, sliding by five per cent, 4.9 per cent and 4.3 per cent, respectively.
“Given the significant rise in oil prices in recent times and the broadly bullish outlook for commodity prices for 2018, we maintain our positive short — to medium-term perspective for equities,” analysts at Afrinvest Securities said in a draft.
In the Treasury bonds space, the average yield declined marginally by 0.009 per cent to close at 14.06 per cent. Yield advancements were recorded on two tenors as yields on five tenors declined while all others traded flat.
Bullish investor sentiment also prevailed in the Treasury bills space, as the average T-Bills yield declined by 0.44 per cent to settle at 13.86 per cent. Yield declines were recorded on the one-month, three-month and six-month tenors, while the nine-month and 12-month tenors recorded respective yield advancements of 0.39 per cent and 0.57 per cent.
The average money market rate shed 0.63 per cent to settle at 5.38 per cent as the open buy-back and overnight rates declined by 0.67 per cent and 0.58 per cent, respectively.
