Sell pressures hit hard on nation’s bourse, indices drops further by N111 billion

Following sustained profit-taking by investors on the Nigerian Stock Exchange (NSE), equity transactions continued on a downward glide yesterday, as market capitalisation dipped further by N111 billion.

Specifically, at the close of transactions yesterday, the All Share Index (NSE-ASI) shed 304.15 absolute points, representing a decline of 0.88 per cent to close at 34,110.22 points. Also, the market capitalisation lost N111 billion to close at N12.453 trillion.

The negative performance was driven by profit-taking in Unilever Nigeria, Guinness Nigeria, Stanbic IBTC Holdings, Guaranty Trust Bank, and Mobil Nigeria.
Analysts at APT Securities Limited, said: “There is no doubt that current political risks in the economy may most likely linger till towards the 2019 election. We therefore advice investors to tread with caution in the short run as the market shuffles in between sell-offs and mild bargain-hunting.”

Similarly, Codros Capital Limited, said: “Our outlook for equities in the near-to-medium term is negative, owing to the absence of a near term positive catalyst, amidst the lingering emerging markets rout. However, macroeconomic fundamentals remain stable and supportive of recovery in the long term.”

Market breadth closed negative, with 19 gainers versus 31 losers. AG Leventis Nigeria recorded the highest price gain of 10 per cent, to close at 44 kobo per share.

Fidson Healthcare followed with 9.09 per cent to close at N6 per share, while Sovereign Trust Insurance gained 8.70 per cent to close at 25 kobo per share. Royal Exchange appreciated by 8.33 per cent to close at 26 kobo, and Unity Bank gained 6.76 per cent to close at 79 kobo per share.

On the other hand, Wapic Insurance led the losers’ chart with 10 per cent, to close at 36 kobo per share. Eterna Oil shed 9.42 per cent to close at N6.25, while Law Union and Rock Insurance lost 9.09 per cent to close at 60 kobo per share.

Standard Alliance Insurance dropped 8.57 per cent to close at 32 kobo, and Unilever Nigeria shed 6.40 per cent to close at N46.80 per share.

The total volume traded depreciated by 17.86 per cent to 164.5 million shares, worth N2.07 billion, traded in 3,188 deals.