Story by Olabode Jegede
The equities market extended its bearish performance, depreciated by 0.20 per cent in one day trading as medium and large capitalized stocks on the Nigerian Stock Exchange (NSE) recorded profit-taking.
The All Share Index (ASI) declined 59.68 basis points, representing a decrease of 0.20 per cent to close at 29,609 basis points from 29,668.68 basis points it opened for trading.
Similarly, Market Capitalization declined by N26.3 billion representing a dip of 0.20 per cent to close at N13.048 trillion from N13.074 trillion it opened for trading.
However, Market breadth closed negative yesterday as 17 stocks advanced relative to 19 stocks that closed in the red while year to date (YTD) return stood at -5.80 per cent.
Activity level reflects a mixed performance as volume traded advanced 55.5 per cent to 394.1 million units while value traded declined by 20.6 per cent to N3.3 billion.
The top traded stocks by volume were Wema Bank (194.7 million units), Guaranty Trust Bank (20.4 million units) and Unilever (20.1 million units) while Unilever (N643.1 million), Guaranty Trust Bank (N625.6 million) and MTN Nigeria (N376 million) led the value chart.
The Sector Indices recorded mixed performance. The Oil & Gas index led the gainers, up 0.9 per cent due to gains in Seplat Petroleum (1.0 per cent) and Forte Oil (4.8 per cent). The Insurance index followed closely as it inched up 0.8 per cent given price appreciation in Linkage Assurance (7.6 per cent), AIICO Insurance (6.1 per cent) and CHI Plc (9.1 per cent).
Also, the Banking index gained 0.3 per cent on the back of bargain hunting in Ecobank Transnational Incorporated (2.9 per cent), Access Bank (0.8 per cent) and Zenith Bank (0.3 per cent).
On the flip side, losses in Cement Company of Northern Nigeria (9.8 per cent) and Beta Glass (10 per cent) drove the Industrial goods index down by 1.9 per cent while the consumer goods index shed 0.4 per cent due to losses in Nestle Nigeria (3.5 per cent) and Cadbury Nigeria (6.4 per cent). The AFR-ICT index lost 0.4 per cent driven by MTN Nigeria (0.4 per cent).
Analysts at Afrinvest Limited said that, “We expect the bearish performance to be sustained in subsequent sessions, barring the occurrence of a major catalyst in the market.”
The best performing stocks were Courteville Business Solutions Plc (9.5 per cent), CHI Plc (9.1 per cent) and Linkage Assurance Plc (0.7 per cent) while CHAMS Plc (10 per cent), Beta Glass Plc (10 per cent) and Cement Company of Northern Nigeria (9.8 per cent) led the decliners.
Analysts at APT Securities and Fund Limited said that, “We retain our cautious trading advice in the short run.
“However, accumulation of fundamentally justified and dividend paying stocks for mid to long term is recommended.”