Investors in equities market lose N224.8bn in 3 days


Following persistence profit-taking on the Nigerian Stock Exchange (NSE), investors that invested in the equities market have lost N224.8 billion in three days

The equities market capitalization opened for trading this week at N11.425 trillion and closed on Tuesday at N11.201 trillion, translating into N224.6 billion or 1.97 per cent decline in market value.

All Share Index (ASI)- the common value-based index that tracks share prices at the NSE,  closed on Tuesday at 30,036.15 basis points from 30,638.90 basis points the equities market opened for trading, representing a drop of 602.75 basis points or 1.97 per cent in three days.

Against that backdrop, the Month-to-Date equities market loss increased to 4.44 per cent.

At the close of the market on Tuesday, investors have continued to take profit most especially in large-cap Banking and Consumer Goods companies listed on the NSE.

Heavy losses were evident across most sector indices – Banking Index that depreciated by 3.57 per cent to 369.70 basis points; Insurance Index dropped by 3.30 per cent to 120.24 basis points; Oil & Gas Index decline by 1.45 per cent to 293.34 basis points, and Consumer Goods  plummet by 0.47 per cent from 714.24 basis points it closed on Monday to 710.85 basis points it closed on Tuesday.

The dip was impacted by losses recorded in medium and large capitalized stocks, amongst which are; Flour Mill Nigeria Plc (-8.63 per cent), Oando Plc (-7.69 per cent), Guaranty Trust Bank Plc (-5.26 per cent), UBA (-5.19 per cent), Zenith Bank Plc (-4.69 per cent), FBNH (-4.67 per cent),  Dangote Flour Mills Plc (-4.24 per cent), Diamond Bank (-4.04 per cent), Dangote Sugar Plc(-2.50 per cent),  and International breweries  (-1.59 per cent).

Market breadth remained negative, with 12 gainers and 28 losers

John Holt stock that appreciated  by 9.09 per cent or N0.04 to N0.48 on Tuesday led equities market top gainer, followed by Okomu Oil Plc that added 7.93 per cent or N6.15 from N77.60 to 83.75.

Union Bank of Nigeria Plc on Tuesday gained 3.45 per cent or N0.20 to N6.00 from N5.80 it opend for trading.

NEM top the losers chart, dropping 9.40 per cent or N0.22 to N2.12 from N2.34 while NNFM depreciated by 9.38 per cent or N0.45 to close at N4.35.

Wapic Insurance Plc dropped by 9.09 per cent or N0.04 from N0.44 to N0.40 per share.

Total volume and value of trades fell by 2.8 per cent and 20.1 per cent to 216.25 million units and N2.67 billion, respectively, and exchanged in 4,508 deals.

Analysts at Cordros capital noted that, “We reiterate our negative outlook for the equities market in the medium term amidst political concerns ahead of the 2019 elections. However, positive macroeconomic fundamentals remain supportive of recovery in the long term.”


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