By Kayode Tokede
The Nigeria Exchange Limited (NGX) stock market on Tuesday ended the first trading session in June in decline following price depreciation in Seplat Petroleum Development Company (SEPLAT) and 16 others.
As a result, the All-Share Index (ASI) shed 23.51 basis points, representing a decline of 0.06 per cent to close at 38,414.37 basis points. Similarly, the overall market capitalisation value lost by N12.26billion to close at N20.022 trillion.
Sector performances were broadly negative today with Oil and Gas (-0.86per cent) Consumer Goods (-0.27per cent) Banking (-0.13per cent) and Industrial (-0.06per cent) sectors all closing down.
The downtrend was driven by price depreciation in medium and large capitalised stocks amongst which are; SEPLAT, Africa Prudential, United Capital, Champion Breweries and Unilever Nigeria.
Capital market analysts attributed the bearish performance to investors’ profit-taking sentiment in recently appreciated blue-chip stocks.
Meanwhile, analysts at Afrinvest Limited said “In the next trading session, we expect market performance to remain tepid, due to absence of positive drivers.”
As measured by market breadth, market sentiment was positive, as 18 stocks gained, relative to 17 decliners. Morison Industries recorded the highest price gain of 9.57 per cent to close at N1.03, per share. Wapic Insurance followed with a gain 9.43 per cent to close at 58 kobo, while University Press rose by 9.40 per cent to close at N1.28, per share.
Consolidated Hallmark Insurance rose by 9.09 per cent to close at 72 kobo, while Regency Alliance Insurance appreciated by 8.89 per cent to close at 49 kobo, per share. On the other hand, Champion Breweries led the losers’ chart by 9.91 per cent to close at N1.91, per share. John Holt followed with a decline of 7.94 per cent to close at 58 kobo, while Africa Prudential shed 7.26 per cent to close at N5.75, per share.
Honeywell Flour Mill shed 6.61 per cent to close at N1.13, while Chams depreciated by 4.76 per cent to close at 20 kobo, per share.
The total volume of trades increased by 39.4 per cent to 274.852 million units, valued at N2.632 billion, and exchanged in 4,159 deals. Transactions in the shares of United Capital topped the activity chart with 23.974 million shares valued at N143.661 million. Veritas Kapital Assurance followed with 23.117 million shares worth N4.623 million, while Eterna traded 21.575 million shares valued at N163.979 million.
Zenith Bank traded 20.475 million shares valued at N470.702 million, while Transnational Corporation of Nigeria (Transcorp) transacted 16.486 million shares worth N14.643 million.
According to analysts at Investment One research, “The equities market closed down today due to the losses recorded across major 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.”