Nigerian stock market drops 1.36% to global reaction to Brexit
Brokers on the floor of Nigerian Stock Exchange in Lagos.
Trading on the Nigerian Stock Exchange (NSE), on Friday, ended on a negative note, halting a three-day rally due to profit taking and exit of Britain from European Union (EU).
The News Agency of Nigeria (NAN), reports that the market capitalisation lost N145 billion or 1.36 per cent to close at N10.526 trillion against N10.671 trillion achieved on Thursday.
Also, the All-Share Index which opened at 31,071.25 declined by 421.59 points or 1.36 per cent to close at 30,649.66.
Mr Ambrose Omordion, the Chief Operating Officer, InvestData Consulting Ltd., attributed the pull back to profit taking and global market reaction to Brexit (exit of Britain from EU).
Omordion urged investors not to panic over the development but should target valuable stocks with huge upside potentials.
He explained that some investors were booking profits from recent gains recorded by the market in the last couple of days.
Omordion said Britain would seek new trade accords with countries around the world with the exit; noting that quitting the EU would cost Britain access to the EU’s trade barrier-free single market.
NAN reports that Nigerian Breweries topped the losers’ chart, shedding N4.49 to close at N145 per share.
Dangote Cement shed N3.76 to close at N200.20 and Unilever lost 70k to close at N17 per share.
Zenith Bank also depreciated by 70k to close at N17, while Flour Mill shed 25k to close at N23.75 per share.
Conversely, Glaxosmithkline recorded the highest gain to lead the gainers’ table with a gain of N2.05 to close at N22.12 per share.
Julius Berger came second with N1.90 to close at N44, while Conoil gained N1.04 to close at N22 per share.
Presco improved by 80k to close at N36.50 and Okomu Oil garnered 50k to close at N31.50 per share.
NAN also reports that a total of 444.51 million shares worth N3.70 billion were exchanged by investors in 5,565 deals.
This was against the 450.52 million shares valued at N5.71 billion transacted by investors in 6,360 deals on Thursday.
NEM Insurance was the most active, trading 91.35 million shares worth N85.89 million.
It was trailed by Transcorp with 50.58 million shares valued at N100.11 million and Zenith Bank sold 41.48 million shares worth N699.30 million.
FBN Holdings traded 36.18 million shares valued at N150.38 million and investors staked N853.02 million on 35.83 million shares of Guaranty Trust Bank.
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1 Comments
I FORESEE SOME FAVOURABLE GAINS FOR NIGERIA AND OTHER DEVELOPING COUNTRIES BASED ON THE WITHDRAWAL OF BRITAIN FROM THE EUROPEAN UNION. OVER THE YEARS, BRITAIN HAS SHOWN LITTLE OR NO CONCERN ABOUT THE INDUSTRIAL DEVELOPMENT OF COMMONWEALTH COUNTRIES. MUCH CONCERN HAS BEEN PLACED ON EU TO THE DETRIMENT OF THE DEVELOPING WORLD. THE RESTRICTION TO DEVELOP THESE DEVELOPING COUNTRIES BY BRITAIN AND OTHER EU COUNTRIES WILL NOW HAVE A REMARKABLE TURN AROUND BECAUSE OF THE ANTICIPATED COMPETITIONS FROM THE EU MEMBERS FOR SUSTAINABLE GOODS AND SERVICES. NIGERIA, FOR EXAMPLE, HAS AN ENLARGED MARKET WHICH WAS NOT PROPERLY HARNESSED BY BRITAIN FOR WHICH THE CHINESE HAVE DOMINATED FOR YEARS. UNDOUBTEDLY, ACCESS TO THE EU MARKET WOULD NO LONGER BE POSSIBLE AND THE DESIRE TO LOOK FOR AN ALTERNATIVE MARKET MAY FORCE BRITAIN TO PATRONIZE NIGERIA AND OTHER DEVELOPING NATIONS FOR CHEAP PRODUCTS AND HUMAN SERVICES. THIS IS MY OWN PERSONAL EVALUATION OF THE EFFECT OF BREXIST ON BRITAIN. NIGERIA SHOULD BE PREPARED TO TAKE ADVANTAGE OF THE SITUATION, PARTICULARLY IN THE AREA OF EMPLOYMENT OF OUR YOUTHS. THERE MAY BE NEED FOR BRITAIN TO EMPLOY CAPABLE NIGERIANS IN SPECIALIZED AREAS TO HELP BRIDGE THE CAP THAT MAY BE PROMPTED DUE TO MOVEMENT OF EU MEMBERS PERSONNEL FROM BRITAIN. THERE ARE OTHER SENSITIVE AREAS THERE MUST BE EXPLOITED IN FAVOUR OF NIGERIA. NIGERIA WILL HAVE TO CREATE AN ENABLING ATMOSPHERE THAT WILL ENHANCE THE POSITION OF WILLING NIGERIANS WHO WOULD LIKE TO TAKE ADVANTAGE OF THE OPPORTUNITY. BRITAIN WILL NOW LEARN TO RESPECT HER COMMONWEALTH CITIZENS BY ACCORDING THEM DUE RESPECT THEY DESERVE OVER THE YEARS. MY CALCULATION IS THAT THE MAJORITY OF VALUABLE INVESTORS WOULD NOW HAVE SOLID APPROACH TO THE NIGERIAN MARKETS. SELF RESPECT WILL COME AROUND FROM THE BRITISH PARTNERS AND THEIR WILLINGNESS TO LISTING TO VIABLE AND REASONABLE ADVICE FROM THEIR NIGERIAN PARTNERS WILL ENHANCE THE PARTNERSHIP. WE ALL PRAY THAT THE WITHDRAWAL OF BRITAIN FROM THE EU WILL USHER IN NEW DIMENSION OF ECONOMIC PROGRESS TO THE DEVELOPING WORLD.
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