Bearish sentiments drag stock market indices by N56b
Following sell-offs in most high-capitalised stocks, transactions on the Nigerian Stock Exchange (NSE), reopened bearish yesterday, as investors’ wealth plunged by N56 billion.
Specifically, at the close of trading Monday, the All-Share Index (ASI) decreased by 105.76 absolute points, or 0.44 per cent fall to close at 24,200.60 points. Similarly, the overall market capitalisation shed N56 billion to close at N12.624 trillion.
The downturn was impacted by losses recorded in medium and large value stocks, including Mobil Nigeria, MTN Nigeria Communications (MTNN), Zenith Bank, Guaranty Trust Bank and Eterna Oil.
Analysts at United Capital Plc urged investors to remain cautious in the equity market, as the second quarter (Q2), 2020 earnings season appears on the horizon.
Also, analysts at Afrinvest Limited, said: “We expect bargain hunting activity to resurface this week given that the equities market remains fairly attractive.”
Analysts at APT Securities and Funds Limited urged investors to take advantage of the bearish outlook and position for mid to long term, even as market fundamentals remain downward.
The market breadth closed negative, recording 14 gainers against 17 losers. NPF Microfinance Bank recorded the highest price gain of 10 per cent to close at N1.32 per share.
Neimeth International Pharmaceuticals followed with 9.35 per cent to close at N1.52, while Linkage Assurance edged up 8.51 per cent to close at 51 kobo, per share.
Associated Bus Company rose 7.84 per cent to close at 55 kobo, and Caverton Offshore Support Group gained 7.73 per cent to close at N1.95, per share.
On the other hand, Mobil Nigeria led the losers’ chart by 9.71 per cent to close at N173.40 per share.
Chams Plc followed with 8.33 per cent to close at 22 kobo, and Eterna shed 6.70 per cent to close at N2.09, per share.
Wapic Insurance lost 5.71 per cent to close at 33 kobo, while Transnational Corporation of Nigeria (Transcorp) shed 4.62 per cent to close at 62 kobo, per share.
Meanwhile, the total volume of trade increased by 75.67 per cent to 231.235 million units worth N2.155 billion, exchanged in 3,950 deals.
Transactions in the shares of Sterling Bank topped the activity chart with 77.546 million shares valued at N96.765 million. FCMB Group followed with 33.275 million shares worth N63.214 million, and Fidelity Bank traded 27.058 million shares at N48.177 million.
Guaranty Trust Bank traded 9.752 million shares valued at N215.017 million, while MTNN transacted 9.732 million shares worth N1.125 billion.
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