Stock Market Depreciates Further by ₦59 Billion in Bearish Trading

Despite price gains that outweighed losses, the bears strengthened their hold on the trading floor of the Nigerian Stock Exchange (NSE) yesterday, causing the market capitalisation to dip further by ₦59 billion.

Specifically, the All-Share Index (ASI) fell by 121.04 points or 0.45 per cent to 26,866.41 points. Accordingly, investors lost ₦59 billion in value as market capitalisation declined to ₦13.078 trillion.

The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which were; Seplat, Nestle Nigeria, Stanbic IBTC Holdings, Cadbury Nigeria, and Nigerian Breweries.

Analysts at United Capital Plc said: “This week, we expect the equities market to remain tepid, as market participants factor in activities in the global economy, as well as the fiscal environment atmosphere in Nigeria, before locking in gains on stocks with strong fundamentals. We also expect the third quarter, 2019 earnings to trickle in.”

However, market breadth closed slightly positive, with 17 gainers versus 16 losers. Courteville Business Solutions recorded the highest price gain of 10 per cent to close at 22 kobo per share.

Africa Prudential followed with 9.94 per cent to close at ₦3.87, while Associated Bus Company appreciated by 8.82 per cent to close at 37 kobo, per share.

Wema Bank rose 8.62 per cent to close at 63 kobo, while UAC of Nigeria (UACN) appreciated 8.40 per cent to close at ₦7.10, per share.

On the other hand, Cornerstone Insurance led the losers’ chart with 10 per cent to close at 36 kobo per share. Seplat followed with 6.85 per cent to close at ₦517, and Cadbury Nigeria shed 5.74 per cent to close at ₦9.85, per share.

Caverton Offshore Support Group lost 5.38 per cent to close at ₦2.46, while Oando shed 2.70 per cent to close at ₦3.60, per share.

The total volume traded rose by 9.24 per cent to 151.71 million shares worth ₦1.50 billion, traded in 2,854 deals. Transactions in the shares of FCMB Groups topped the activity chart with 55.67 million shares valued at ₦89.06 million.

Transnational Corporation of Nigeria (Transcorp) followed with 17.15 million shares worth ₦17.21 million, while FBN Holdings traded 14.39 million shares valued at ₦76.24 million.

Access Bank traded 7.36 million shares valued at ₦52.35 million, while Zenith Bank transacted 6.87 million shares worth ₦123.54 million.

By Helen Oji

The Guardian Newspaper October 8th, 2019

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