Equities market drops by 0.07% to extend negative sentiment
By Kayode Tokede
Transaction on the Nigerian Stock Exchange (NSE) equities market segment on Wednesday closed on a negative note to extend prior day bearish sentiment as the market indices fell by 0.07 per cent on the back of profit taking of some highly capitalised stocks.
The NSE All Share Index (ASI) fell by 29.03 basis points or 0.07 per cent to 40,465.32 basis points. Accordingly, investors lost N15 billion in value as market capitalisation declined to N21.169 trillion.
Sector performances showed that Industrial (-.80 per cent), Banking (-0.24 per cent) and Consumer Goods (-0.07 per cent) sectors all closed in the red, while Oil & Gas (+0.20 per cent) inched up.
The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are; Beta Glass, Japaul Gold and Ventures, FIDSON Healthcare, Consolidated Hallmark Insurance and Vitafoam Nigeria.
Market sentiment, as measured by market breadth, was negative, as 22 stocks lost, relative to 18 gainers. Julius Berger recorded the highest price gain of 9.73 per cent to close at N20.30, per share. LivingTrust Mortgage Bank, formerly Omoluabi Mortgage Bank followed with a gain 9.68 per cent to close at 68 kobo, while Honeywell Flour Mill gained 9.60 per cent to close at N1.37, per share.
Cornerstone Insurance went up by 9.26 per cent to close at 59 kobo, while UPDC Real Estate Investment Trust appreciated by 7.41 per cent to close at N5.80, per share.
On the other hand, Beta Glass led the losers’ chart by 9.75 per cent to close at N50.00, per share. Japaul Gold and Ventures followed with a decline of 8.86 per cent to close at 72 kobo, while Fidson Healthcare lost 8.55 per cent to close at N5.35, per share.
Consolidated Hallmark Insurance lost 7.89 per cent to close at 35 kobo, while Vitafoam Nigeria shed 7.56 per cent to close at N7.95, per share.
The total volume traded declined by 31.49 per cent to 244.202 million shares, worth N2.654 billion, and traded in 4,083 deals.
Transactions in the shares of FBN Holdings (FBNH) topped the activity chart with 52.315 million shares valued at N381.499 million. Transnational Corporation of Nigeria (Transcorp) followed with 24.806 million shares worth N23.819 million, while Guaranty Trust Bank traded 16.531 million shares valued at N512.526 million.
Zenith Bank traded 13.978 million shares valued at N349.275 million, while Vitafoam Nigeria transacted 12.080 million shares worth N94.519 million.
According to Investment One research, “The equities market closed down today due to the losses recorded in most sectors.
“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.”
On market performance, analysts at Afrinvest Limited said “We believe bargain hunting would boost the performance of the market this week as prices remain attractive.”
