The Guardian
Email YouTube Facebook Instagram Twitter WhatsApp

Heightening insecurity, Coronavirus scare drag index further by N174 billion

Related

Following massive sell-offs on the shares of most bellwethers, trading at the nation’s stock market extended the losing streak for the eighth successive sessions, as market capitalisation lost additional N174 billion.
   
This is despite the full year 2019 results churned out by quoted companies on the sector of the Nigerian Stock Exchange (NSE).
   
Yesterday, the All-Share Index (ASI) fell 338.51 absolute points, representing a dip of 1.19 per cent to close at 28,093.76 points. Similarly, the market capitalisation lost N174 billion to close at N14.471 trillion.

   
The Chief Research Officer, Investdata Consulting Limited, Ambrose Omordion, attributed the persistent bear run to the heightening insecurity situation in Nigeria, in addition to the Coronavirus spread globally, which has continued to threaten the Chinese economy.

However, he added: “We see investors focusing on the upcoming full-year earnings season, targeting companies with strong potential to grow their dividend on the strength of their earnings capacity.

“Again, the current undervalued state of the market offers investors opportunities to position for the short, medium and long-term, which is why investors should target fundamentally-sound, and dividend-paying stocks for possible capital appreciation in this year.”
   
Analysts from Imperial Asset Management also expect the market to maintain prevailing trend in the next trading session, amid foreign investors’ worries on lower oil prices as the Coronavirus escalates.

 
The downturn was impacted by losses recorded in medium and large value stocks, amongst which were; Mobil Nigeria, Dangote Cement, Nigerian Breweries, Conoil, and NASCON Allied Industries.
   
Market breadth closed negative, with 18 gainers against 21 losers. Union Bank of Nigeria (UBN) recorded the highest price gain of 9.85 per cent to close at N7.25, per share. Law Union and Rock Insurance followed with 9.52 per cent to close at 92 kobo, and Consolidated Hallmark Insurance 9.09 per cent to close at 36 kobo, per share.
   
Chemical and Allied Products (CAP) rose 8.85 per cent to close at N24.60, while Linkage Assurance gained 8.77 per cent to close at 62 kobo, per share.

On the other hand, Conoil Nigeria and NASCON led the losers’ chart by 10 per cent each, to close at N18.00 and N13.50, respectively, while Mobil Nigeria followed with 9.94 per cent to close at N133.20, per share.
   
CI Leasing lost 9.52 per cent to close at N6.65, and Smithkline Consumer Nigeria shed 8.26 per cent to close at N5.00, per share.
   
However, total volume traded increased 34.4 per cent to 350.21 million shares worth N4.28 billion, traded in 4,729 deals.  
 
Transactions in the shares of Zenith Bank topped the activity chart with 98.13 million shares valued at N1.87 billion. FBN Holdings (FBNH) followed with 47.13 million shares worth N277.81 million, while FCMB Groups traded 41.21 million shares valued at N79.05 million.
   
United Bank for Africa (UBA) traded 21.68 million shares at N162.21 million, while Ecobank Transnational Incorporated (ETI) transacted 19.86 million shares worth N141.099 million.


Receive News Alerts on Whatsapp: +2348136370421

No comments yet