- Equities Hit 15-month Low With N155b Loss
Nigerian equities continued on the negative trend yesterday as the stock market reopened to large and open sell orders, which overwhelmed bargain-hunting activities.
Benchmark indices at the equities market indicated average decline of 1.25 per cent, equivalent to net capital depreciation of N155 billion within the five-hour trading session. The decline depressed the average year-to-date return for Nigerian equities to -12.11 per cent.
The All Share Index (ASI)-the main index that tracks share prices at the Nigerian Stock Exchange (NSE), slumped to 33,611.69 points, its lowest point in 15 months. The ASI had opened this week at 34,037.91 points.
Aggregate market value of all quoted equities dropped from its opening value of N12.426 trillion to close at N12.271 trillion.
With nearly two losers for every gainer, the negative overall market situation was due to widespread selloffs across the sectors, especially within the large-cap stocks in the consumer goods and banking sectors.
All sectoral indices closed in the red, underlining the market-wide bearishness. The NSE Consumer Goods Index declined by 3.7 per cent. The NSE Insurance Index dropped by 2.1 per cent. The NSE Banking Index dipped by 1.25 per cent. The NSE Oil and Gas Index declined by 0.52 per cent while the NSE Industrial Goods Index slipped by 0.001 per cent.
Consumer goods’ leader and NSE’s highest-priced stock, Nestle Nigeria led the 22-stock losers’ list with a loss of N145 to close at N1,355. Forte Oil followed with a drop of N1.95 to close at N19.05. Global Spectrum dropped by 60 kobo to close at N5.75. Guaranty Trust Bank lost 50 kobo to close at N34.50. Nigerian Breweries and Zenith Bank declined by 40 kobo each to close at N92.50 and N20.50 respectively while NEM Insurance dropped by 23 kobo to close at N3.08 per share.
On the positive side, Flour Mills of Nigeria led 10 other gainers with a gain of 50 kobo to close at N22. Custodian Investment rose by 10 kobo to close at N5.50. Honeywell Flour Mills and University Press appreciated by 8.0 kobo each to close at N1.52 and N2 respectively while FBN Holdings and NPF Microfinance Bank added 5.0 kobo each to close at N9.05 and N1.65 respectively.
Total turnover stood at 137.63 million shares valued at N1.36 billion in 3,104 deals. Diamond Bank was the most traded stock with 30.07 million shares worth N40.4 million. United Bank for Africa followed with a turnover of 16.66 million shares worth N130.87 million while Guaranty Trust Bank placed third with 11.25 million shares worth N390.94 million.
Market analysts were almost unanimous on the outlook for the market. “We believe that today’s market performance reflects investors’ bearish outlook on the market as political risks remain heightened in addition to the continued absence of positive drivers. We, however, expect some bargain hunting to drive performance in the near term based on the availability of attractive stocks in the market,” Afrinvest Securities stated.
Analysts at SCM Capital Markets maintain their “conservative outlook for the market, in the absence of a positive catalyst amidst political risks as the 2019 electoral cycle draws nearer and sustained emerging market weakness”.
