Stock market reopens bearish as indices plunge by N206b
Following price losses incurred by most blue-chip stocks, transactions on the trading floor of the Nigerian Stock Exchange (NSE) reopened on a downturn yesterday, causing market capitalisation to plunge further by N206 billion.
Specifically, at the close of transactions yesterday, the All-share index (ASI) shed 513.92 absolute points, representing a decline of 1.66 per cent, to close at 30,531.69 points.
However, market capitalisation decreased by N206 billion representing a dip of 1.76 per cent, to close at N11.466 trillion.
The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are; Nestle Nigeria, Beta Glass, Nigerian Breweries, Cement Company of Northern Nigeria (CCNN) and Dangote Flour Mills.
Analysts at APT Securities and Funds Limited said the downward trend persists amidst good fundamentals, saying that this is unconnected to low foreign participation as foreign investors take a watch posit in anticipation of new economic reforms.
They however, assured that there is no cause for alarm while urging investors to focus on liquid stocks that have been affected by downward trend, likewise dividend paying stocks bearing in mind that strong fundamental(s) is a good reason to position for mid to long term amidst dwindled stock price.
Market breadth closed negative, with 12 gainers versus 18 losers. McNichols recorded the highest price gain of 10 per cent, to close at 77 kobo, per share.
Berger Paints followed with a gain of 9.70 per cent to close at N9.05, while Ikeja Hotel appreciated by 9.57 per cent to close at N2.06, per share.
Caverton Offshore Support Group appreciated by 8.84 per cent to close at N2.71, while Unity Bank gained 8.75 per cent to close at 87 kobo, per share. On the other hand, Union Diagnostic & Clinical Services led the losers’ chart by 10 per cent, to close at 27 kobo per share.
Beta Glass followed with a decline of 9.94 per cent to close at N64.80, per share.
Dangote Flour and CCNN declined by 9.80 per cent, each to close at N9.20 and N17.95, respectively, while Oando shed 9.73 per cent to close at N5.10, per share.
The total volume traded rose significantly by 546.06 per cent to 1.7 billion shares, worth N3.68 billion, and traded in 3,251 deals.
Transactions in the shares of Wema Bank topped the activity chart with 1.46 billion shares valued at N1.05 billion.
United Bank for Africa (UBA) followed with 62.95 million shares worth N485.03 million, while Chams traded 47.71 million shares valued at N9.67 million.
Fidelity Bank traded 17.5 million shares valued at N33.25 million, while Ecobank Transnational Inc (ETI) transacted 17.45 million shares worth N226.75 million.