The Nigerian Stock Exchange (NSE) All-Share Index fell by 0.13 per cent to close lower at 26,245.34 yesterday as the bears extended their control on the market. The equities remained under sell pressure towards consumer goods and oil and gas counters, leading to a decline of N11.3 billion in market capitalisation to close at N9.03 trillion.
The market had slipped into the bears’ territory on Tuesday, depreciating by 0.36 per cent following losses by highly capitalised stocks.
At the close of trading yesterday, the NSE ASI shed 0.13 per cent as stocks such as Forte Oil, Guinness Nigeria, Unilever Nigeria, Nestle Nigeria and Zenith Bank went down in value. A total of stocks shed weight compared with only 12 counters that appreciated. Guinness Nigeria Plc and Portland Paints and Products Nigeria Plc led the price losers with 5.0 per cent apiece to close at N63.65 and N1.71 respectively.
Diamond Bank Plc shed 4.8 per cent, just as Unilever Nigeria Plc and Transcorp Plc declined by 4.2 per cent and 3.3 per cent in that order. United Capital Plc lost 3.1 per cent as investors locked in profits recorded by the stock recently, closing at N3.39 per share.
Other losers were: Neimeth (2.7 per cent); WAPIC Insurance Plc (1.8 per cent); Forte Oil Plc (1.8 per cent), Cadbury Nigeria Plc (1.4 per cent).
Cadbury will get a new managing director at the end of this month in the person of Mr. Muhammad Amir Shamsi. He will be replacing the current MD, Mr. Roy Naaman who was two years to reposition the company for better performance. Cadbury Nigeria Plc had hoped to consolidate its market share and tap into other expanding markets in West Africa with the appointment of Namaan.
However, Cadbury has not made significant progress since 2015. For instance, the company posted a decline of 46 per cent in profit after tax in 2015. Specifically, Cadbury Nigeria recorded a revenue of N27.825 billion for the year ended December 31, 2015, showing a decline of nine per cent from N30.518 billion, while profit after tax stood at N1.153 billion in 2015, down by 46 per cent to N2.137 billion in 2014.
The company is heading towards a dismal performance in 2016, having posted a loss for the nine months ended September 30, 2016.