Bears sustain hold on NSE as index plummets further by 0.3%

….Exchange reclassifies Oando from medium to low-priced stock
Following price losses incurred by most of the blue-chip stocks, the bears sustained dominance on the equities sector of the Nigerian Stock Exchange (NSE) yesterday, as the All-share index slumped further by 0.3 per cent.

At the close of trading yesterday, the All-Share Index (ASI) decreased by 67.55 absolute points, representing a decline of 0.25 per cent to close at 27,252.09 points. Similarly, the market capitalisation lost N33 billion, and closed at N13.258 trillion.

The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are; Lafarge Africa, MTN Nigeria, Dangote Sugar Refinery, PZ Cussons Nigeria and Custodian Investment.

Market breadth was negative, with 13 gainers versus 17 losers. UAC of Nigeria (UACN) and UACN Property Development Company recorded the highest price gain of 10 per cent, each to close at N5.00 and 90 kobo, respectively.

Cadbury Nigeria followed with a gain of 6.45 per cent to close at N9.90, per share. Okomu Oil went up by 6.13 per cent, to close at N44.15, while Nigerian Aviation Handling Company (NAHCO) appreciated by 6.12 per cent, to close at N2.60, per share.

On the other hand, Ikeja Hotel led the losers’ chart by 9.30 per cent, to close at N1.17, per share. Honeywell Flour Mills followed with a decline of 7.07 per cent to close at 92 kobo, while PZ Cussons Nigeria lost 5.08 per cent to close at N5.60, per share.

Fidelity Bank depreciated by 3.75 per cent each to close at N1.54, while Lasaco Assurance declined by 3.57 per cent to close at 27 kobo, per share.

Total volume traded depreciated by 46.8 per cent to 133.34 million shares, worth N2.4 billion, and traded in 2,561 deals. Transactions in the shares of Guaranty Trust Bank topped the activity chart with 35.002 million shares valued at N925.88 million.

FBN Holdings followed with 12.21 million shares worth N55.06 million, while Guinness Nigeria traded 10.13 million shares valued at N377.78 million.
Zenith Bank traded 8.96 million shares valued at N156.68 million.

Transnational Corporation of Nigeria (Transcorp) sold 6.23 million shares worth N6.33 million.

Meanwhile the NSE yesterday notified stakeholders on the reclassification of Oando Plc from medium priced stock to low priced stock effective Thursday, September 5, 2019.

According to the exchange, the decision is in compliance to Rule 15.29: Pricing Methodology, Rulebook of The Exchange, 2015 (Dealing Members’ Rules).

“Oando dropped below the N5 mark on April 30, 2019, and traded below N5 up till close of business on 30 August 2019. Low Priced Stocks are securities that have traded below N5 per share in four out of the last six months period.

“For upward or downward movements in price to occur on any Low Priced Stock that is priced at below N5 and listed on The NSE, stockbrokers are required to trade a minimum volume of 100,000 units and tick size of N0.01kobo”, the NSE added.