Investors lose N148bn amid negative market turnover


By Kayode Tokede

Investors on the Nigerian Exchange Limited (NGX) equities market segment lost N148billion on Tuesday as the market closed on a negative trajectory, to extend the bearish sentiments to two consecutive trading losses.

The decline was triggered by investors’ sell-off in Portland Paints & Products Nigeria and 21 others. In summary, the All-Share Index (ASI) dropped by 283.95 basis points or 0.72 per cent to close at 39,022.52 basis points, while the overall market capitalisation value lost N148 billion to close at N20.339 trillion.

Sector performance was mixed today with the Industrial (-2.57 per cent) and Consumer Goods (-0.05 per cent) sectors both closing in the red, while the Oil and Gas (+0.26 per cent) and Banking (+0.03 per cent) sector closed positively.

The market loss was driven by price depreciation in large and medium capitalised stocks amongst which are; BUA Cement, Portland Paints & Products Nigeria, SCOA Nigeria, FBN Holdings and Zenith Bank.

On market performance, analysts at Afrinvest Limited said that “We expect the performance at the local bourse to remain bearish in the coming trading session due to absence of positive catalyst.”

Market sentiment, as measured by market breadth, closed negative as 16 stocks gained, relative to 22 losers. Associated Bus Company and The Initiates Plc recorded the highest price gain of 10 per cent each to close at 44 kobo each, while Eterna followed with a gain 9.93 per cent to close at N7.97, per share.

Transcorp Hotels appreciated by 9.85 per cent to close at N3.57, while Wema Bank gained 5.45 per cent to close at 58 kobo, per share. On the other hand, Portland Paints & Products Nigeria led the losers’ chart by 9.85 per cent to close at N2.47, per share. Champion Breweries followed with a decline of 9.68 per cent to close at N1.96, while SCOA Nigeria shed 9.30 per cent to close at N1.95,  per share.

Regency Alliance Insurance shed 8.11 per cent to close at 34 kobo, while SUNU Assurances depreciated by 7.41 per cent to close at 50 kobo, per share.

The total volume of trades decreased by 42.8 per cent to 204.647 million units, valued at N1.840 billion, and exchanged in 3,940 deals.Transactions in the shares of Courteville Business Solutions topped the activity chart with 27.122 million shares valued at N5.465 million. Fidelity Bank followed with 23.406 million shares worth N54.207 million, while Zenith Bank traded 18.545 million shares valued at N435.532 million.

Access Bank traded 11.499 million shares valued at N94.606 million, while Transnational Corporation of Nigeria (Transcorp) transacted 10.906 million shares worth N9.598 million.

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