- Mobil, Neimeth, Cutix Lead N28bn Market Loss
The Nigerian Stock Exchange recorded its first loss on Wednesday as Mobil Oil Nigeria Plc (11 Plc), Neimeth International Pharmaceuticals Plc and Cutix Plc emerged as the top three losers following local equities’ N28bn plunge.
A total of 589.584 million shares valued at N2.119bn exchanged hands in 4,366 deals.
Mobil, Neimeth and Cutix shares dropped respectively by 9.1 per cent, eight per cent and five per cent while Diamond Bank Plc, FCMB Group Plc and Fidelity Bank Plc emerged as the best-performing counters, appreciating by 9.6 per cent, 9.5 per cent and 8.5 per cent, accordingly.
Investor sentiment as measured by market breadth strengthened compared to Tuesday consequent upon 37 stocks advancing against 11 stocks that declined.
The local bourse closed negative despite a rally in small and mid cap stocks as sell offs in Dangote Cement Plc dragged the All-Share Index 20 basis points lower to settle at 38,187.28 points while the year-to-date return retreated to -0.1 per cent.
Accordingly, market capitalisation decreased to N13.589tn from N13.617tn, and according to Afrinvest Securities’ analysts, the performance could primarily be attributed to losses in Dangote Cement, which declined by three per cent.
Ex- Dangote Cement, the benchmark index would have appreciated 95bps. Activity level softened as volume and value traded fell by 137.3 per cent and 18.8 per cent to 589.6 million units and N2.1bn, respectively.
Sector performance was broadly positive across all indices save for the oil/gas index which shed 1.4 per cent due to price depreciation in Mobil.
On the flipside, the insurance index appreciated the most, up by 1.5 per cent following gains in AXA Mansard Insurance Plc and NEM Insurance Nigeria Plc, which appreciated respectively by five per cent and 4.4 per cent.
The banking index followed, rising by 1.2 per cent as bargain hunting in Ecobank Transnational Incorporated, Guaranty Trust Bank Plc and Fidelity Bank Plc buoyed the index following 2.9 per cent, 0.6 per cent and 8.5 per cent gains, respectively.
Similarly, the industrial and consumer goods indices grew respectively by 0.6 per cent and 0.5 per cent as investors took position in Lafarge Africa Plc, Cement Company of Northern Nigeria Plc, Dangote Sugar Refinery Plc and Dangote Flour Plc, which gained five per cent, 3.7 per cent, 7.4 per cent and five per cent, respectively.
Commenting on the day’s performance, the Afrinvest analysts said, “Despite Wednesday’s negative performance, investor sentiment strengthened; hence, we expect to see a rebound in the market in subsequent trading sessions.”