Investors lose N145 billion in three days of bearish trading
The bears have continued to strengthen their hold on the equities sector of the Nigerian Stock Exchange (NSE), as more blue-chip stocks joined the league of losers, forcing investors wealth to depreciate by N145 billion in three trading days.
Specifically, the market capitalization of the NSE which reopened at N13.811 trillion on Monday, now stands at N13.666 trillion, representing N145 billion or 1.06 percent loss. Also, the All-share index plummeted by 298.18 points to 28,042.80 from 28,340.98 at which it reopened for trading on Monday.
Yesterday’s downturn was impacted by losses recorded in medium and large capitalized stocks, among which are; Nestle Nigeria, Julius Berger, Guinness Nigeria, Unilever Nigeria, and Flour Mills Nigeria.
The Chief Research Officer of InvestData Consulting Limited, Ambrose Omordion linked the sustained sell-off to negative sentiments and high sell pressure in blue-chip stocks due to political risk arising from the lack of policy direction from the government
According to him, this has been worsened by the rising insecurity challenges across the country. He noted further that the delay of the federal government to provide economic direction and reform policies that can stimulate productivity, in addition to the absence of a cabinet for effective governance have continued to constrain investment in the market and entire economy.
However, he expressed optimism on the likely impact of portfolio repositioning for the second half of the year in the midst of expected second-quarter results, especially for the banking stocks. Market breadth was negative, with eight gainers versus 26 losers. AG Leventis Nigeria recorded the highest price gain of 10 percent, to close at 33 kobo, per share. Chams followed with a gain of eight percent to close at 27 kobo.
Mutual Benefits Assurance appreciated by five percent to close at 21 kobo, per share. Courteville Business Solutions went up by 4.76 percent to close at 22 kobo, while Consolidated Hallmark Insurance appreciated by 3.33 percent to close at 31 kobo, per share.
On the other hand, Julius Berger led the losers’ chart by 9.77 percent, to close at N18, per share. Nigerian Aviation Handling Company (NAHCO) followed with a decline of 9.62 percent to close at N2.35 per share. Unity Bank declined by 9.23 percent to close at 59 kobo, per share. AXA Mansard Insurance depreciated by 8.33 percent to close at N1.65 and Honeywell Flour Mills declined by 7.07 percent to close at 92 kobo, per share.
However, the total volume traded appreciated by 13.84 percent to 243.72 million shares, worth N3.89 billion, and traded in 3,449 deals. Transactions in the shares of Guaranty Trust Bank topped the activity chart with 77.51 million shares valued at N2.27 billion.
FBN Holdings followed with 29.47 million shares worth N163.77 million, while United Bank for Africa (UBA) traded 13.64 million shares valued at N76.50 million. Zenith Bank traded 13.28 million shares valued at N247.42 million, while Lasaco Assurance sold 11.3 million shares worth N3.92 million.