Investors sell-off in insurance shares, others depreciate equities market by 0.02%

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Stories by Kayode Tokede and Olabode Jegede

The equities Market closed lower on Wednesday shedding 0.02 per cent, reversing Tuesday positive sentiment.

The downturn in the equities market segment of the Nigerian Stock Exchange (NSE) was aided by the massive sell-off in Insurance shares, among others mid-small capitalized companies.

The All-Share Index closed at 32,375.12 basis points on Wednesday from 32,381.00 basis points it opened, translating into 0.02 per cent drop in investors’ investment in one day.

In terms of value, the market capitalisation of listed equities dropped by N2 billion to N11.819 trillion on Wednesday from N11.822 billion recorded on Tuesday.

As a result, the Month-to-Date and Year-to-Date losses inched up slightly to -7.10per cent and -15.34per cent, respectively.

According to NSE, the Insurance Index dropped by 1.26 per cent and Consumer Goods Index depreciated by 0.63 per cent, while positive returns persisted in the Oil & Gas that rose by 1.06 per cent, Industrial Goods Index gained 0.40 per cent, and Banking Index added 0.39 per cent.

Notable shares include of Mansard Insurance dropped by 9.65 per cent, PZ Nigeria fall by 7.41 per cent, while Forte Oil rose by 10.00 per cent.

Other gainers are CCNN, 9.73 per cent, and Guaranty Trust Bank, 0.89 per cent respectively.

Market breadth remained positive with a wider margin of 24 gainers and 12 losers, led by Forte Oil and Mansard Insurance respectively.

Total volume and value of trades declined by 29.45per cent and 33.17per cent to 190.35 million units and N2.65 billion respectively, exchanged in 4,705 deals.

Analysts said, the absence of a one-off positive trigger and political concerns ahead of the 2019 election guide our conservative outlook for equities in the short-to-medium term.

However, stable macroeconomic fundamentals remain supportive of recovery in the long term.

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