Stock market reopens with 0.2% loss
Transactions on the equity sector of the Nigerian Stock Exchange (NSE) reopened on a downward note yesterday, occasioned by price losses in most blue chip stocks, as the All Share Index (ASI) depreciated by 0.2 per cent.
Specifically, at the close of transactions yesterday, the ASI decreased by 48.41 absolute points, representing a dip of 0.2 per cent to close at 27,650.28 points. Similarly, the market capitalisation lost N24 billion to close at N13.460 trillion.
The downturn was impacted by losses recorded in medium and large capitalised stocks, among which are: Presco, UAC of Nigeria (UACN), Nigerian Breweries, Vitafoam Nigeria, and Dangote Cement.
Analysts at Afrinvest Limited said: “We maintain our bearish stance for the market, although the current low prices of stocks pose opportunities for bargain hunting.”
Also, analysts at United Capital Plc in their report for this week predicted that the decision of the Monetary Policy Committee (MPC) would affect investors’ sentiment towards the equity market, in conjunction with the happenings in the global space.
The Chief Research Officer of Investdata Consulting Limited, Ambrose Omodion said: “Market players should maintain a cautious outlook due to the low investor confidence, liquidity and the wait for major economic triggers. Hence, we advise investors to trade cautiously in the short-term as we await positive catalysts to drive market recovery.
He added: “That notwithstanding, we would not overlook the possibility of a bargain-hunting motive supporting positive performance, especially with many fundamentally sound stocks remaining under-priced. With the prices of major blue chips continuing to drop in recent weeks, we expect speculative trading to shape the market’s direction this week, despite the seeming negative outlook.”
Market breadth closed negative, with 18 gainers versus 24 losers. NCR Nigeria and Trans-Nationwide Express recorded the highest price gain of 10 per cent each, to close at N4.95 and 77 kobo, respectively, while Eterna followed with a gain 9.09 per cent to close at N3 per share.
Cutix went up by 8.97 per cent to close at N1.70, while Cornerstone Insurance appreciated by 7.69 per cent to close at 42 kobo, per share. On the other hand, Presco led the losers’ chart by 9.93 per cent, to close at N40.35, per share.
UACN Property Development Company followed with a decline of 9.86 per cent to close at N1.28, while Vitafoam Nigeria went down by 9.79 to close at N3.87, per share.
NPF Microfinance Bank lost 9.60 per cent to close at N1.13, while UACN shed 9.49 per cent to close at N7.15, per share.
The total volume traded declined by 40.34 per cent to 109.56 million shares, worth N888.17 million, and traded in 3,382 deals. Transactions in the shares of FBN holdings topped the activity chart with 20.29 million shares valued at N114.29 million.
Transnational Corporation of Nigeria (Transcorp) followed with 9.83 million shares worth N10.33 million, while Access Bank traded 9.699 million shares valued at N70.26 million.
UACN traded 5.81 million shares valued at N43.12 million, while Wapic Insurance transacted 4.64 million shares worth N1.6 million.
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