Equities market down by N12bn over investors’ sell-pressure in banks’ share
By Kayode Tokede
Transactions on the Nigerian Exchange Limited (NGX) equities market on Wednesday ended on a red note with a decline of N12 billion, extending the losing streaks to eight consecutive sessions due to investors’ sell-pressure in the banking sector and consumer goods sector.
In summary, the All-Share Index (ASI) decreased by 23.08 basis points, representing a dip of 0.06 per cent to close at 38,233.68 basis points on Wednesday.
Similarly, the overall market capitalisation value shed N12 billion to close at N19.928 trillion.
Sector performance tilted towards the red zone today with Banking (-0.44per cent) and Consumer Goods (-0.08per cent) sectors closing down, while the Oil and Gas and Industrial sectors closed flat.
The market downturn was driven by price depreciation in large and medium capitalised stocks amongst which are; Flour Mills of Nigeria, Zenith Bank, Guaranty Trust Bank, FBN Holdings. (FBNH) and United Bank for Africa (UBA).
Capital market analysts noted that this is coming on the back of the decision of the Central Bank of Nigeria (CBN) Monetary Policy Committee to leave key monetary policy rates unchanged at the just concluded MPC meeting.
Analysts at Afrinvest Limited said “We expect the market to remain bearish in the next trading session due to the absence of a positive catalyst.”
However, market sentiment, as measured by market breadth, was positive as 20 stocks gained, relative to 14 losers.
John Holt recorded the highest price gain of 9.68 per cent to close at 68 kobo, per share. Vitafoam Nigeria followed with a gain 9.19 per cent to close at N1.10, while Lasaco Assurance appreciated by 9.09 per cent to close at N1.56, per share.
C&I Leasing rose by 8.52 per cent to close at N4.84, while Learn Africa appreciated by 7.84 per cent to close at N1.10, per share. On the other hand, FTN Cocoa Processors led the losers’ chart by 7.32 per cent to close at 38 kobo, per share. NPF Microfinance Bank followed with a decline of 5.62 per cent, to close at N1.68, while Flour Mills of Nigeria shed 5.25 per cent to close at N27.95, per share.
Japaul Gold and Ventures shed 1.75 per cent to close at 56 kobo, while Wema Bank depreciated by 1.72 per cent to close at 57 kobo, per share.
The total volume of trades declined by 18.83 per cent to 203.088 million units, valued at N1.816 billion, and exchanged in 3,594 deals. Transactions in the shares of Fidelity Bank topped the activity chart with 24.415 million shares valued at N54.264 million. zenith Bank followed with 22.099 million shares worth N508.002 million, while Mutual Benefits Assurance traded 16.935 million shares valued at N6.919 million.
Sovereign Trust Insurance traded 16.862 million shares valued at N4.631 million, while Transnational Corporation of Nigeria (Transcorp) transacted 13.832 million shares worth N11.647 million.
According to analysts at Investment One research, “The equities market closed down today due to the losses recorded in the Banking and Consumer sector. Going forward, we expect investor’s sentiments to be swayed by the search for real positive returns and developments in the interest rate space.
“We reiterate that this may be a great period to pick up some quality names with a medium to long-term investment horizon.”
