Sell-offs in Industrial Goods shares, others depreciate equities market by N68bn

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By Olabode Jegede

Sell-offs in Industrial Goods, Oil & Gas shares, among others down the Nigerian Stock Exchange (NSE) equities market by N68 billion on Tuesday trading session.

With drop in Cement Company of Northern Nigeria and Forte Oil, the market Capitalization declined by N68 billion or 0.49 per cent to close at N13.744 trillion from N13.812 trillion it opened for trading.

Consequently, the NSE All-Share Index dropped by 140.15 basis points, representing a decline of 0.49 per cent to close at 28,200.88 basis points from 28,341.03 basis points it opened for trading.

The market breadth closed negative, even as the exchange registered 32 losers as against 10 gainers while Year-Till-Date (YTD) declined to 10.3 per cent.

However, activity level was mixed as volume traded rose 23.7 per cent to 216.7 million units while value traded declined 16.1 per cent to N1.8 billion.

The most traded stocks by volume were FBN Holdings (46.8 million units), Courteville Business Solutions (46.7 million units) and United Bank for Africa (24.1 million units) while by value, Stanbic (N389.3 million), FBN Holdings (N266.2 million) and Dangote Cement (N223.7 million) were the most traded stocks.

Meanwhile, 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.”

The Industrial Goods index declined the most, shedding 2.2 per cent, as price depreciation in Cement Company of Northern Nigeria (10 per cent), Lafarge Wapco (1.5 per cent) and CAP (10 per cent) dragged the index while the Oil & Gas index trailed, retreating by one per cent following sell pressures in Forte Oil (9.9 per cent) and Conoil (9.6 per cent).

Similarly, the Banking and AFRI-ICT indices dipped by 0.8 per cent and 0.4 per cent respectively following losses in Union Bank of Nigeria (8.7 per cent), FBN Holdings (4.3 per cent), Access Bank (three per cent) and MTN Nigeria (0.8 per cent).

Conversely, the Consumer Goods index sustained gains as it inched further northward by 0.5 per cent on the back of continued bargain hunting in Nestle Nigeria (1.8 per cent) and Nigerian Breweries (0.9 per cent). The Insurance index also gained, stemming from price appreciation in NEM Insurance (4.1 per cent) and LASACO Assurance (9.7 per cent).

Red Star Express led the gainers’ table, gaining N0.51 to close at N5.71per share. LASACO Assurance followed with a gain of N0.03 to close at N0.34, while NEM Insurance garnered N0.09 to close at N2.29 per share.

On the other hand, CAP Plc topped the losers’ table with a loss of N2.75 to close at N24.75 per share. Cement Company of Northern Nigeria trailed with a loss of N1.45 to close at N13.05, while Okomu Oil Palm dipped by 54 N6.15 to close at N55.80 per share.

“We expect the negative performance to persist throughout the week as sell pressures dominates activities,” Analysts at Afrinvest Limited said.

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