Stock Market Reopens Bearish As Investors Lose ₦156 Billion

Following price losses suffered by the bellwethers, equity market resumed trading for the month on a bearish note, causing investors’ wealth to plunge significantly by ₦156 billion.

At the end of transactions yesterday, the All -Share Index (ASI) fell by 352.26 points or 1.18 per cent to 29,614.61 points. Accordingly, investors lost ₦156 billion in value as market capitalisation declined to ₦13.050 trillion.

The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which were; Dangote Cement, Nigerian Breweries, Guaranty Trust Bank, Unilever Nigeria, and Ecobank Transnational Incorporated (ETI).

Analysts at Afrinvest Limited predict a mixed performance this week, as investors take caution in selecting stocks ahead of first half of 2019 earnings releases.

Analysts at APT Securities and Funds Limited, also said: “We retain our cautious trading advice in the short run. However, accumulation of fundamentally justified and dividend paying stocks for mid to long term is recommended.”

However, market breadth closed positive, with 21 gainers versus 16 losers. Cornerstone Insurance recorded the highest price gain of 10 per cent to close at 22 kobo per share. NPF Micro Finance Bank followed with 8.57 per cent to close at ₦1.14, while Consolidated Hallmark Insurance gained 7.69 per cent to close at 28 kobo, per share.

Academy Press rose 7.41 per cent to close at 29 kobo, and Chams 6.90 per cent to close at 31 kobo, per share.

On the other hand, Red Star Express led the losers’ chart with 10 per cent to close at ₦4.95, per share. Transnational Corporation of Nigeria (Transcorp) followed with 9.73 per cent to close at ₦1.02, while Ecobank Transnational fell 9.09 to close at ₦10, per share.

Guaranty Trust Bank lost 6.99 per cent to close at ₦30.60, while Unilever Nigeria shed 6.97 per cent to close at ₦30.70, per share.
Also, total volume traded dropped 56.74 per cent to 107.44 million shares, worth ₦1.14 billion, traded in 3,064 deals.

Transactions in the shares of Transcorp topped the activity chart with 21.86 million shares valued at ₦22.46 million. FBN Holdings followed with 12.36 million shares worth ₦81.36 million, while Zenith Bank traded 8.55 million shares at ₦168.57 million.

Access Bank traded 7.64 million shares valued at ₦50.34 million, while Guaranty Trust Bank transacted 7.50 million shares worth ₦232.58 million.

By Helen Oji

The Guardian Newspaper July 2nd, 2019

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