Indices down by N130 billion as market reverses gaining streak

The Nigerian equities market’s gaining streak came to a close yesterday, as losses incurred by most blue-chip stocks dragged market indices. The development caused the market capitalisation depreciated by N130 billion.

Yesterday, the All Share Index (ASI) fell by 267.15 points or 0.97 per cent to 27,319.64 points. Accordingly, investors lost N130 billion in value as market capitalisation declined to N13.291 trillion.

The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are; Nestle Nigeria, Guinness Nigeria, Dangote Cement, Forte Oil and MTN Nigeria.

The Chief Research Officer of Investdata Consulting Limited, Ambrose Omodion said: “We expect the mixed performance to continue in the midst of profit-taking and portfolio repositioning. The prevailing low liquidity and oscillating oil price, as Q2 GDP of 1.94 per cent have confirmed the state of the economy as at end of half-year.”

Analysts at Afrinvest Limited said, “Given the weak state of the economy, our bearish outlook on the equities market remains unchanged.”

Market breadth closed negative, with 10 gainers versus 18 losers. UAC of Nigeria (UACN) recorded the highest price gain of 9.89 per cent, to close at N5.00, per share.

UACN Property Development Company followed with a gain 9.76 per cent to close at 90 kobo, while Africa Prudential appreciated by 8.82 per cent to close at N3.95, per share.

Linkage Assurance went up by 8.33 per cent to close at 52 kobo, while International Breweries appreciated by 8.18 per cent to close at N11.90, per share. On the other hand, Guinness Nigeria led the losers’ chart by 9.90 per cent, to close at N37.30, per share. Ikeja Hotel followed with a decline of 9.79 per cent to close at N1.29, while Forte Oil went down by 9.73 to close at N14.85, per share.

UPDC Real Estate Investment Trust (UPDCREIT) lost 9.26 per cent to close at N4.90, while Eterna shed 5.36 per cent to close at N2.65, per share.

The total volume traded fell by 14.9 per cent to 250.45 million shares, worth N3.19 billion, and traded in 3,219 deals. Transactions in the shares of Access Bank topped the activity chart with 81.85 million shares valued at N542.31 million. Lafarge Africa followed with 40.65 million shares worth N587.39 million, while Zenith Bank traded 27.50 million shares valued at N481.48 million.

FBN Holdings traded 19.28 million shares valued at N89.54 million, while Transnational Corporation of Nigeria (Transcorp) transacted 13.71 million shares worth N14.07 million.