Stock market re-opens bearish, down by N16 billion

Analysts predict rebound as investors leverage cheap stocks

Despite price gains that outweighed losses, transactions on the equity sector of the Nigerian Stock Exchange (NSE), re-opened on a downward note yesterday, following piece losses suffered by major highly capitalised stocks, as market capitalisation depreciated by N16billion.

Specifically, at the close of transactions yesterday, market capitalisation of listed stocks dropped by N16billion to N14.914trillion, from N14.930trillion posted on Friday.
Similarly, the all-share index, which measures the performance of quoted companies, dropped by 45.9 points at 0.1 per cent from 41,218.72 to 41,172.82.

But analysts are optimistic about improved performance as investors take advantage of cheap valuations in the market.Precisely, analyst from Afrinvest Securities Limited, said: “Despite the decline last week, we expect market performance this week to be bolstered by increased bargain hunting as investors take advantage of cheap valuations in the market. Furthermore, given the improved investor sentiment, we expect market performance to be positive this week.”

The Chief Research Officer, Investdata Securities Limited, Ambrose Omordion, said: “We expect in this full week a mixed performance as investors study corporate earnings, and the upbeat economic data to reposition their portfolios in the midst of low valuations in medium and high cap stocks ahead of Q1 GDP and half year interim dividend on the strength of numbers.

“Also, we expect the impact of the unconventional monetary policy stimulus to complement measures by the Central Bank of Nigeria (CBN), which recently signed a currency swap deal with its counterpart – the People’s Bank of China (PBoC).

“The move is expected to reduce cost of importation, forex volatility arising from exchange rate pressure on the Naira, while helping to conserve Nigeria’s external reserve as oil price remains up, supporting economic fundamentals. Meanwhile, dividend income players are taking position ahead of more economic data, even amidst the expected sustained volatility and repositioning.”

Further breakdown of yesterday’s transactions showed that Nigerian Breweries topped the losers’ chart with N1.00 kobo to close at N128.00 per share, while Stanbic IBTC followed with N0.40 kobo to close at N49.10 per share.

FBN Holdings shed N0.35 kobo to close at N11.95 per share. Guaranty Trust Bank dropped depreciated by N0.25 kobo to close at N45.05 per share. UAC-Properties dropped N0.12 kobo to close at N2.34 per share.

On the other hand, Dangote Cement led others on the gainers chart with N2.50 kobo to close at N248.00 per share. Eterna Oil followed with N0.56 kobo to close at N6.30kobo per share. Guinness appreciated by N0.50 kobo to close at N104.00 per share. Oando garnered N0.40 kobo to close at N8.75 per share. May & Baker added N0.09 kobo to close at N2.75 per share.

Lasaco Insurance dominated in volume terms with 24 million shares worth N9.6million, while Guaranty Trust Bank followed with 20 million units worth N937million.Sovereign Insurance accounted for 16 million shares worth N3.6million. Mutual Benefit traded 15 million units valued at N4.3billion. Sterling Bank exchanged 15 million shares worth N25million.