By Kayode Tokede
The sell-offs in the domestic stock market continued yesterday as the benchmark index fell 0.44 per cent due to price declines in MTN Nigeria Communications (MTN) and 29 others.
The All Share Index (ASI) fell by 175.56 basis points or 0.44 per cent to 39,522.06 basis points. Accordingly, investors lost N92 billion in value as market capitalisation declined to N20.678 trillion.
Sector performances showed that while Consumer Goods (-0.45 per cent) and Industrial (-0.41 per cent) sectors both closed negatively, Oil & Gas (+5.02per cent) closed in the green. Conversely, Banking sector closed flat.
The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are; MTNN, Lafarge Africa, International Breweries, Dangote Sugar Refinery and Oando.
Analysts at Afrinvest Limited said “We expect the sell-offs to continue due to increasing rates in the fixed income market. However, the current prices of stocks make an attractive case for dividend yields.”
Market sentiment, as measured by market breadth, was negative, as 30 stocks lost, relative to 16 gainers. Seplat Petroleum Development Company (SEPLAT) recorded the highest price gain of 10 per cent to close at N583.00, per share. AIICO Insurance followed with a gain 5.22 per cent to close at N1.21, while Cornerstone Insurance gained 5.17 per cent to close at 61 kobo, per share.
UACN Property Development Company went up by five per cent to close at 84 kobo, while Cutix appreciated by 4.21 per cent to close at N2.23, per share. On the other hand, Japaul Gold and Ventures led the losers’ chart by 10 per cent to close at 54 kobo, per share. NEM Insurance followed with a decline of 9.91 per cent to close at N1.91, while Champion Breweries lost 9.76 per cent to close at N1.85, per share.
NPF Microfinance Bank lost 9.47 per cent to close at N1.72, while Linkage Assurance shed 8.93 per cent to close at 51 kobo, per share.
However, the total volume traded advanced by 9.8 per cent to 244.343 million shares, worth N4.128 billion, and traded in 4,714 deals. Transactions in the shares of Zenith Bank topped the activity chart with 41.382 million shares valued at N1.060 billion. Guaranty Trust Bank followed with 28.991 million shares worth N919.823 million, while United Capital traded 24.606 million shares valued at N145.324 million.
AXA Mansard Insurance traded 17.529 million shares valued at N18.46 million, while FBN Holdings (FBNH) transacted 16.541 million shares worth N115.787 million.
”The equities market closed down today due to the losses recorded in the Consumer Goods 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,” analysts at Investment one research explained.