Stock market sustains losing streak as index plummets by 0.35%
The Nigerian Stock Exchange (NSE) yesterday sustained bearish trend with a decline of 0.35 per cent, following losses incurred by most bluechip stocks.
Yesterday, the All-Share Index (ASI) decreased by 101.13 absolute points, representing a dip of 0.35 per cent to close at 28,432.27 points, Similarly, the overall market capitalisation shed N52 billion to close at N14.645 trillion.
The downturn was impacted by losses recorded in medium and large capitalised stocks, among which are: Chemical and Allied Products (CAP), Dangote Sugar Refinery, Zenith Bank, UAC of Nigeria (UACN) and Guaranty Trust Bank.
The Chief Operating Officer of InvestData Consulting, Ambrose Omordion, said that the NSE’s index extended its losing streak for the seventh consecutive day, reflecting apparent concerns among investors over the recent U.S. visa ban on Nigeria, and the lingering insecurity in the country, as the monetary and fiscal authorities fail to align their policies for a clear economic direction.
He also noted mixed performance recorded in the release of unaudited fourth quarter (Q4) and 2019 full-year results of companies, and the fact that no dividend has been declared so far by December 31 year-end companies.
He anticipated this pullback to slow down despite the likely continuation of the mixed intraday movement in the midst of profit-taking and positioning by investors, taking advantage of the correction ahead of dividend news.
Market breadth closed negative, with seven gainers versus 23 losers. Union Bank of Nigeria (UBN) and Wapic Insurance recorded the highest price gain of 10 per cent each, to close at N6.60 and 33 kobo, respectively, while Law Union and Rock Insurance followed with a gain 9.09 per cent to close at 84 kobo, per share.
Lasaco Assurance went up by 3.85 per cent to close at 27 kobo, while Transnational Corporation of Nigeria Plc (Transcorp) rose by 2.06 per cent to close at 99 kobo, per share.
On the other hand, NEM Insurance and Royal Exchange led the losers’ chart by 10 per cent each, to close at N2.16 and 27 kobo, respectively, while Dangote Sugar Refinery followed with a decline of 9.78 per cent to close at N12.45, per share
Chams went down by 9.68 to close at 28 kobo, while CAP shed 9.60 per cent to close at N22.60, per share. However, the total volume traded increased by 1.30 per cent to 254.86 million shares, worth N3.04 billion, and traded in 5,199 deals.
Transactions in the shares of Zenith Bank topped the activity chart with 68.48 million shares valued at N1.31 billion. FBN Holdings (FBNH) followed with 32.66 million shares worth N193.69 million, while Access Bank traded 28.83 million shares valued at N259.55 million.
United Bank for Africa (UBA) traded 23.63 million shares valued at N174.62 million, while Guaranty Trust Bank transacted 13.27 million shares worth N384.70 million.
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