Renewed sell pressure pulls stock market index by 1.09%
•Analysts optimistic on market rebound
Renewed sell pressure on the trading floor of the Nigerian Stock Exchange (NSE), yesterday, reversed four-days bullish run, causing the All-share index to dip by 1.09 per cent.
Yesterday, investors embarked on massive profit taking to recoup their investment, following the few days of capital appreciation and market upbeat.Specifically, at the end of transactions yesterday, the All-share Index (NSE-ASI) shed 404.95 absolute points, representing a decline of 1.09 per cent to close at 36,612.83 points. Also, the market capitalisation declined by N147billion to close at N13.263trillion.
The decline was impacted by losses recorded in medium and large capitalised stocks, amongst which are; Nestle Nigeria, International Breweries, Chemical & Allied Products (CAP), Dangote Cement, and Nigerian Breweries.
Analysts at Afrinvest Securities Limited, said: “Despite the improvement in investors’ sentiment, losses in bellwethers dragged the market. Nonetheless, we expect a rebound in subsequent trading sessions as investors hunt for bargain in existing attractive stocks.
Also, Cordros Capital Limited, said: “We guide investors to trade cautiously in the short-to-medium term, as the absence of a positive one-off catalyst and brewing political concerns, continue to cast a shadow on our outlook for risky assets. However, the likelihood of recovery in the long term remains supported by stable macroeconomic fundamentals.”
Market breadth closed negative, with 21 gainers versus 24 losers. Neimeth International Pharmaceuticals recorded the highest price gain of 10 per cent, to close at 55kobo per share.Jaiz Bank gained 8.62 per cent to close at 63kobo, while Okomu Oil appreciated by 8.43 per cent to close at N81 per share.
Mutual Benefit Assurance appreciated by 8.33 per cent to close at 39kobo, while Union Diagnostic & Clinical Services gained 7.69 per cent to close at 28kobo per share.
On the other hand, CAP, and Royal Exchange led the losers’ chart by 10 per cent each, to close at N31.50, and 27kobo per share, respectively, while International Breweries shed 9.73 per cent to close at N33.40, per share.
Unity Bank declined by 9.30 per cent to close at 78kobo, and Equity Assurance shed 9.09 per cent to close at 20kobo per share total volume traded declined marginally by 1.94 per cent to 240.21 million shares worth N4.99billion, traded in 3,494 deals. Transactions in the shares of Zenith Bank topped the activity chart with 94.86 million shares valued at N2.19billion.
United Bank for Africa followed with 28.67 million shares worth N271.9million, while Nigerian Breweries traded 15.11 million shares valued at N1.55billion.
Fidelity Bank traded 12.62 million shares valued at N23.57million, while Sterling Bank transacted 8.18 million shares worth N11.73million.