Sell pressure increases as investors’ wealth dip further by 0.8%
Sell pressure remained relatively high on the equity sector of the Nigerian Stock Exchange (NSE), occasioned by profit-taking in blue-chip stocks ahead of year-end rally, as the All-share index plunged by 0.82 per cent.
At the close of transactions yesterday, the All -share Index (ASI) was down by 252.09 absolute points, representing 0.82 per cent decline to close at 30,614.73 points. Similarly, the market capitalisation depreciated by N92 billion, closing at N11.177 trillion.
The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are; Nestle Nigeria, Mobil, Nigerian Breweries, UAC of Nigeria (UACN) and Zenith Bank.
Analysts at United Capital Plc said: “As the domestic bourse hovers in an oversold region, we reiterate our expectations of a Santa Claus rally this month as year-end portfolio repositioning and bargain hunting provides support. Yet, the possibility of an unprecedented rally could be capped by the overhang of jitters in the polity.”
Market breadth closed negative, recorded 13 gainers against 25 losers.
Trans Nationwide Express recorded the highest price gain of 8.47 per cent, to close at 64 per share.
Forte Oil followed with a gain of 6.39 per cent to close at N19.15 kobo, while Vita Foam Nigeria rose 5.52 per cent to close at N3.44 per share.
“We expect overall market sentiments to remains mixed with rekindled buying interest coming from banking, and oil& gas stocks amidst rebound in oil price in the international market that continues to trigger investors’ sentiment.
The Chief Research Officer of Investdata Consulting Limited, Ambrose Omodion said bargain hunting for cheap stocks with strong fundamentals is likely to continue during the week, even as investors watch the political space ahead of the 2019 polls.
“As the presidential campaign kicks off, Nigerians are expecting new strategy, new roadmap to address the economic issues, rising poverty level, development of human capital, infrastructure and education with timeframes for delivery.
“These campaigns are likely to drive prices north, or south, while determining market direction before or after Presidential election. Investors should review their positions in line with investment goals, strength of the company numbers and act as events unfold in the global and domestic environment.’
Further breakdown of yesterday’s transactions showed that Sterling Bank appreciated by 3.57 per cent to close at N1.74, while United Bank for Africa (UBA) up by two per cent to close at N7.65 per share.
On the other hand, Livestock Feeds led the losers’ chart by 9.62 per cent, to close at 47 kobo, per share.
Cornerstone Insurance followed with a decline of 9.09 per cent to close at 20 kobo, while Mutual Benefit Assurance shed 8.70 per cent to close at N21 kobo, per share.
Mobil shed 8.47 per cent to close at N160, while UACN depreciated by seven per cent, to close at N9.30 per share.
The total volume traded declined by 8.05 per cent to 164.58 million shares, worth N1.67 billion, and traded in 3,193 deals.
Transactions in the shares of Diamond Bank topped the activity chart with 44.92 million shares valued at N45.6 million.
FBN Holdings followed with 28.15 million shares worth N214.22 million, while Sterling Bank traded 15.41 million shares valued at N25.49 million.
UBA traded 8.93 million shares valued at N67.86 million, while Zenith Bank transacted 8.92 million shares worth N207.79 million.