Nigerian equities lose N1.05tr in 7 days

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Nigerian equities lost N369 billion yesterday in their highest decline in five months, increasing the total net capital depreciation over the seven days of consecutive decline to N1.05 trillion. All major indices at the Nigerian Stock Exchange (NSE) closed in the red yesterday as investors stepped up open market orders to attract bids, forcing most transactions to close at lower prices.

The benchmark indices indicated average day-on-day decline of 2.41 per cent, equivalent to net capital loss of N369 billion. The average year-to-date return pared to a single digit at 9.06 per cent.

The All Share Index (ASI)-the benchmark value index for Nigerian equities, closed yesterday at 41,708.15 points as against its opening index of 42,737.89 points. Aggregate market value of all quoted equities also declined from its opening value of N15.337 trillion to close at N14.968 trillion.

Nigerian equities had lost N542 billion in five-day consecutive negative trading sessions last week, the longest downtrend so far this year. With equities reaching a high of N16 trillion two weeks ago, most analysts had attributed the recent decline to profit-taking transactions by investors seeking to monetise their capital gains. The ASI had opened last week at 44,639.99 points while the aggregate market value of all quoted equities had opened at N16.019 trillion.

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With 40 losers to 15 gainers, all sectoral indices at the NSE also closed negative yesterday. The NSE Consumer Goods Index recorded above average decline of 2.8 per cent. The NSE Industrial Goods Index dropped by 1.6 per cent. The NSE Insurance Index declined by 1.5 per cent. The NSE Oil & Gas Index depreciated by 0.6 per cent while the NSE Banking Index slid by 0.2 per cent.

“Following seven consecutive days of decline in the market, we do not rule out the possibility of an upswing in performance before the end of the week. Our view is buttressed by the fact that the current 14-day RSI stands at 38.8 points, which is closer to the oversold region,” Afrinvest Securities stated.

Large-cap stocks headlined the losing streak. Nestle Nigeria-Nigeria’s highest-priced stock, led the losers with a loss of N40 to close at N1, 320. Dangote Cement-Nigeria’s most capitalised stock followed with a loss of N13.30 to close at N258.70. Nigerian Breweries-the second most capitalised quoted company dropped by N5.20 to close at N127.80. Guinness Nigeria declined by N5 to close at N105. International Breweries lost N2.50 to close at N57.50 while Forte Oil declined by N2.40 to close at N45.80 per share.

On the positive side, Lafarge Africa led the gainers with a gain of N1 to close at N51. Zenith Bank followed with a gain of 60 kobo to close at N30. Access Bank and Berger Paints rose by 45 kobo each to close at N12 and N9.45 respectively. Dangote Sugar Refinery added 30 kobo to close at N21 while Eterna chalked up 27 kobo to close at N5.69 per share.

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Total turnover stood at 470.5 million shares valued at N3.68 billion in 6,309 deals. Diamond Bank was the most active stock with a turnover of 67.7 million shares valued at N181.14 million. FCMB Group followed with a turnover of 49.22 million shares worth N126.18 million while Fidelity Bank ranked third with 42.78 million shares valued at N129.55 million.

Market analysts at FSDH Securities said they expected that the market performance may remain soft in the days ahead, but there is a possibility of a rebound at the end of the week, driven by bargain hunting.

 

The post Nigerian equities lose N1.05tr in 7 days appeared first on The Nation Nigeria.

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