Equities market plummets by 1.11% as investors dump Nestle Nigeria, MTN Nigeria shares

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By Kayode Tokede

The equities market of the Nigerian Stock Exchange (NSE) dropped by 1.11  per cent in All-Share Index on the heels of investors profit-taking in Nestle Nigeria plc, MTN Nigeria and Guinness Nigeria shares last week.

Weak sentiments continued to dominate the domestic equities market, as the All-Share Index dropped to 27,755.87 basis points last week from 28,067.09 basis points it opened for trading.

Consequently, the market capitalisation dropped to N14.456trillion, N162billion below N14.618 trillion reported last week.

Consequently, the Year-Till-Date (YTD) and Month-Till-Date (MTD) returns settled at 3.4 per cent and -2.7per cent, respectively.

Nigerian NewsDirect analysing by sectors, significant losses recorded in the Consumer Goods index dropped by 6.47 per cent to 510.79 basis points and Insurance index declined by 2.16 per cent to 129.45 basis points as sectors weighed on the market performance.

The Oil and Gas index also decline by 0.69 per cent to 242.21 basis points as Banking index sheds 0.21 basis points from 368.14 basis points to 367.14 basis points.

Meanwhile, the Industrial Goods appreciated by 0.78 per cent who was a sole gainer last week.

Nigerian NewsDirect gathered that Linkage Assurance plc with  25.81 per cent or N0.16 decline top the losers table, dropping from N0.62 to N0.46 while Skyway Aviation Handling company plc declined by 23.26 per cent or N0.87 from N3.74 to N2.87 per share. In addition, Guinness Nigeria plc dropped by 16.56 per cent or N5.00 to N25.20 while Nestle Nigeria plc depreciated by 10 per cent or N138 to N1,242 last week.

On the flip side, livestock feeds plc gained 16.67 per cent or N0.10 to close at N0.70 while share price of United vapital added 15.29 per cent ot N0.39 from N2.55 to N2.94 per share.

The NSE weekly report disclosed that a total turnover of 912.175 million shares worth N12.126 billion in 17,083 deals were traded last week by investors on the floor of the Exchange, in contrast to a total of 1.478 billion shares valued at N20.295 billion that exchanged hands in 23,263 deals in prior’s week market transactions.

According to the report, “The Financial Services industry (measured by volume) led the activity chart with 624.219 million shares valued at N7.129 billion traded in 9,640 deals; thus contributing 68.43 per cent and 58.79per cent to the total equity turnover volume and value respectively.

“The Conglomerates followed with 93.204 million shares worth N452.093 million in 861 deals. The third place was Oil and Gas industry, with a turnover of 59.267 million shares worth N124.638 million in 1,254 deals.

“Trading in the Top Three Equities namely, Zenith Bank Plc, Guaranty Trust Bank Plc and United Bank for Africa Plc. (measured by volume) accounted for 304.089 million shares worth N5.788 billion in 4,290 deals, contributing 33.34per cent and 47.73per cent to the total equity turnover volume and value respectively.”

“In our view, the trend witnessed this week is likely to persist, as weakening market sentiment and the absence of positive catalysts are expected to pressure market returns. Nonetheless, we advise investors to take positions in fundamentally justified stocks,” analysts at Cordros capital explained.

The weekly report stated that a total of 1,540 units valued at N137,421.20 were traded last week in five deals.

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