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Analysts worry over persistent selloff in bellwether stocks as index slumps further by 0.7%


Nigerian Stock Exchange

The nation’s stock market continued its negative trajectory last week, extending the bearish record that resulted to a further slump in stock market indices by 0.7 per cent.
Analysts, at the weekend, expressed worry on the continued selloffs in bellwether stocks like Dangote Cement, MTN Nigerian, Nestle, Guaranty Trust Bank and Nigerian Breweries.
According to them, the development remains a cause for serious concern among investors because it is a sign that smart money is still exiting these stocks. 
This, according to them, is also an indication that market and economic fundamentals remain weak and in desperate need of a stimulant.
Specifically, the Chief Research Officer of Investdata Consulting Limited, Ambrose Omodion said: “For now, there is seemingly no direction for the economy, as it remains rudderless with the government yet to form its economic team. 
“The administration also seems not in a hurry to roll out reforms expected to drive economic activities and boost revenue for the implementation of the 2019 budget at a time the deficit level is rising.
Analysts at Codros Capital Limited said: “In the absence of a positive catalyst, we guide investors to trade cautiously in the short term. However, stable macroeconomic fundamentals and compelling valuation remain supportive of recovery in the mid-to-long term.”
Further analysis of last week’s trading showed that a turnover of 7.476 billion shares worth N91.107 billion was recorded in 17,192 by investors on the floor of the exchange in contrast to a total of 868.739 million shares valued at N15.792 billion that was exchanged hands last week in 12,201 deals during the preceding week. 
The financial services industry (measured by volume) led the activity chart with 6.121 billion shares valued at N17.460 billion traded in 8,479 deals; thus contributing 81.87 per cent to the total equity turnover volume.
The oil and gas industry followed with 1.002 billion shares worth N65.058 billion in 2,019 deals. 
The third place was ICT industry with a turnover of 115.320 million shares worth N3.387 billion in 866 deals.

Trading in the top three equities namely, Wema Bank Plc, Forte Oil Plc and Zenith Bank Plc (measured by volume) accounted for 6.573 billion shares worth N77.492 billion in 2,895 deals, contributing 87.91 per cent to the total equity turnover volume and value respectively.
A total of 662 units valued at N990,530.00 were traded this week in 4 deals compared with a total of 2,163 units valued at N354,065.06 that was transacted last week in six deals.
The NSE All-share index and market capitalisation depreciated by 0.6 per cent to close the week at 29,851.29 and N13.155 trillion respectively. All other indices finished higher with the exception of the NSE-Main Board Index, NSE Premium Index, NSE MERI Growth Index, NSE consumer goods Index and NSE Lotus II which depreciated by 0.49 per cent , 0.77 per cent, 0.83 per cent, 1.64 per cent and 1.54 per cent respectively while NSE ASeM Index closed flat

Also, 34 equities appreciated in price during the week, higher than 19 in the previous week. 
33 equities depreciated in price, higher than 31 equities of the previous week, while 101 equities remained unchanged, lower than 118 equities recorded in the preceding week.

An additional 1,880,000,000 ordinary shares of Ellah Lakes Plc were listed on the daily official list of NSE on Monday, 17 June 2019.

The additional shares listed arose from the 1,880,000,000 ordinary shares of 50 Kobo each issued to the shareholders of Telluria Limited, as consideration for the acquisition of the entire issued shares of Telluria Limited by Ellah Lakes.

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