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Investors lose N116bn amid negative market breadth

By Kayode Tokede

Trading activities on the Nigerian equities market on Wednesday sustained the previous day’s negative sentiment as the market performance indices dropped by 0.57 per cent, amidst profit-taking on Banking and Industrial Sectors.

The downturn was supported by investors portfolio readjustment ahead of first quarter (Q1), 2021 earnings’ results.

The All-Share Index (ASI) declined by 221.98 basis points, representing a decrease of 0.57 per cent to close at 39,045.13 points. While the overall market capitalisation value lost N116 billion to close at N20.429 trillion.

Sector performance was mixed with the Banking (-0.84 per cent) and Industrial sector (-0.03 per cent) sectors closing in the red, while the Consumer Goods (+0.39 per cent) and Oil & Gas (+0.02 per cent) sectors closed in green.

The market loss was driven by price depreciation in large and medium capitalised stocks amongst which are; MTN Nigeria Communications (MTNN), Stanbic IBTC Holdings, Glaxo Smithkline Consumer Nigeria, Access Bank and Guaranty Trust Bank.

Afrinvest Limited said “We expect the equities market to close in the red for the week. However, opportunities for bargain hunting exist.”

Market sentiment, as measured by market breadth, was negative, as 24 stocks lost, relative to 18 gainers. Linkage Assurance recorded the highest price gain of 10 per cent to close at 66 kobo, while Meyer Plc and Prestige Assurance  followed with a gain 9.76 per cent each, to close at 45 kobo, each, per share.

NEM Insurance went up by 9.52 per cent to close at N2.30, while Guinness Nigeria  appreciated by 7.28 per cent  to close at N33.90, per share. On the other hand, Daar Communications led the losers’ chart by 8.70 per cent to close at 21 kobo, per share. Wema Bank followed with a decline of 8.06 per cent to close at 57 kobo, while University Press lost 7.76 per cent to close at N1.07, per share.

UACN Property Development Company lost 7.23 per cent to close at 77 kobo, while Japaul Gold and Ventures shed 6.82 per cent to close at 41 kobo, per share.

Also, the total volume of trades increased by 3.3 per cent to 347.17 million units, valued at N2.80 billion, and exchanged in 3,990 deals.  Transactions in the shares of Wema Bank topped the activity chart with 94.047 million shares valued at N53.371 billion. Union Bank of Nigeria (UBN) followed with 78.909 million shares worth N418.215 million, while Zenith Bank traded 22.137 million shares valued at N500.202 million.

FBN Holdings (FBNH) traded 11.984 million shares valued at N87.144 million, while Guaranty Trust Bank transacted 10.715 million shares worth N352.667 million.

According to analysts at Investment One research, “The equities market closed down today due to the losses recorded in the Banking and Industrial 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.”

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