Stock market reopens bearish as index dips by 0.10%

Sell-off in most blue-chip stocks, especially in that of Guaranty Trust Bank and Unilever, forced transactions on the Nigerian Exchange Limited (NGX) to reopen on a downward note yesterday, as the All-Share Index (ASI) depreciated by 0.10 per cent.

Specifically, at the close of transactions yesterday, the All-Share Index (ASI) dropped by 39.70 absolute points, representing a decline of 0.10 per cent to close at 38,686.40 points while market capitalisation declined by N21 billion to close at N20.164 trillion.

The market loss was driven by price depreciation in large and medium capitalised stocks amongst which are Guaranty Trust Bank, Unilever Nigeria, Lafarge Africa, Union Bank of Nigeria (UBN) and FCMG Group.

Reacting to market performance, analysts at Vetiva Dealing & Brokerage said: ”After the negative sentiment that dominated the Nigerian market today, we foresee a slight rebound as investors buy up some of the down beaten stocks in tomorrow’s session. Therefore, we anticipate a mixed session with a positive tilt.”

Price losses outweighed gains as 13 stocks appreciated in price while 28 others constituted the losers’ chart. Juli Plc led the losers’ chart with 9.93 per cent to close at N1.36 kobo while Computer Warehouse Group followed with a decline of 9.80 per cent to close at N1.38 kobo. Japaul Gold and Ventures shed 8.47 kobo to close at 54 kobo.

Honeywell Flour Mill shed 5.69 kobo to close at N1.16 kobo. FCMB Group depreciated by 4.55 kobo to close at N3.15 kobo. Morison Industries recorded the highest price gain of 9.73 per cent to close at N1.24, per share. Conoil followed with a gain 9.63 per cent to close at N20.50 and Veritas Kapital Assurance rose by 8.33 per cent to close at 26 kobo, per share.

Africa Prudential appreciated by 7.63 per cent to close at N6.35, while Royal Exchange gained 6.94 per cent to close at 77 kobo, per share.

However, the total volume of trades rose by 5.9 per cent to 210.752 million units, valued at N1.450 billion, and exchanged in 3,958 deals.

Transactions in the shares of FBN Holdings (FBNH) topped the activity chart with 16.4640 million shares valued at N121.039 million. Wapic Insurance followed with 16.476 million shares worth N9.062 million.

Chams traded 16.232 million shares valued at N3.318 million. Zenith Bank traded 15.944 million shares valued at N365.897 million, while Japaul Gold and Ventures transacted 13.175 million shares worth N7.164 million.