Market reopens bearish as index plunges further by 1.53%

Continued price losses by many blue-chip stocks, yesterday depressed the indices further as transactions on the Nigerian Stock Exchange (NSE) reopened on a downturn making the All-share index plunge by 1.53 per cent. Yesterday, the All -share index (ASI) shed 454.14 absolute points, representing a dip of 1.53 per cent to close at 30,226.77 points. Similarly, the market capitalisation depreciated by N170 billion to close at N10.954 trillion.

Yesterday’s performance was influenced by price depreciation in medium and large capitalised stocks, among which are, Dangote Cement, Stanbic IBTC Holdings, Guinness Nigeria, Guaranty Trust Bank and Union Bank of Nigeria (UBN).Analysts at Afrinvest Limited said: “Despite the overall negative performance last week, we observed increased buying activity on bellwether stocks, and we expect this trend to be sustained this week as investors seek to take position in attractively priced stocks”.

Investdata Research Consulting Limited said: “With the prices of major blue chips stocks continuing to drop in recent weeks, we expect speculative trading to shape the market’s direction in the next trading week despite the seeming negative outlook.

“The volatility witnessed last week, was driven by traders and investors repositioning ahead of dividend declaration by major listed companies. The ongoing volatility will continued as investors and fund managers rebalance their portfolios. “With eyes fixed on the political space and ongoing full year company earnings and post-election market dynamics, investors should review their positions in line with their investment goals, strength of company numbers and act as events unfold in the global and domestic.”

However, in the absence of major triggers that could drive positive sentiments, we maintain a bearish near-term outlook.”
Market breadth remained negative with 13 gainers against 30 losers. Mutual Benefit Assurance recorded the highest price gain of 10 per cent, to close at 22 kobo, per share.

Neimeth International Pharmaceuticals followed with a gain of 9.80 per cent, to close at 56 kobo, while Learn Africa rose by 8.94 per cent to close at N1.34, per share. Chams appreciated by 8.33 per cent to close at 26 kobo per share.

Eterna went up by 6.25 per cent to close at N4.25, per share. On the other hand, Fidson Healthcare led the losers’ chart by 10 per cent, to close at N4.05, per share. Tripple Gee and Company followed with a decline 9.09 per cent to close at 70 kobo per share.

NPF Microfinance Bank declined by 8.72 per cent to close at N1.36, per share.
Consolidated Hallmark Insurance declined by 7.41 per cent to close at 25 kobo, while McNichols down by 7.35 per cent, to close at 63 kobo, per share.

However, total volume traded went up by 13.63 per cent to 455.88 billion units, valued at N5.26 billion, and exchanged in 3,993 deals. Sterling Bank traded with 93.42 million shares valued at N242.19 million. Guaranty Trust Bank followed with 78.33 million shares worth N2.66 billion, while Triple Gee and Company traded 60 million shares valued at N42 million.
Zenith Bank traded 26.64 million shares valued at N540.69 million, while Access Bank transacted 24.89 million shares worth N140.1 million.