Stock market extends losing streak, sheds N92bn

The nation’s stock market has shed N92bn as it extended its bearish run into the third consecutive day.

The market capitalisation of equities listed on the floor of the Nigerian Stock Exchange dropped from N10.979tn on Friday last week to N10.887tn at the close of trading on Wednesday.

The All Share Index shed 0.45 per cent on Wednesday to settle at 28,966.41 basis points while the year-to-date loss further weakened to -7.8 per cent.

As investors lost N48.9bn on Wednesday, analysts at Afrinvest Securities Limited attributed the negative market performance to profit-taking activities in Dangote Cement Plc, Guaranty Trust Bank Plc and Access Bank Plc.

Activity level was mixed as 324.810 million shares valued at N3.242bn exchanged hands in 3,631 deals, representing a 24.6 per cent dip in volume traded and a 14.4 per cent increase in value traded.

United Bank for Africa Plc (59.7 million), Access Bank (46.4 million) and Sterling Bank Plc (40.3 million) were the top traded stocks by volume while the top traded stocks by value were Zenith Bank Plc (N661.7m), GTB (N494.4m) and UBA (N409.0m).

Performance across sectors was largely bearish as four of five indices recorded losses.

The banking index led losers, down by 0.8 per cent while the insurance index fell by 0.4 per cent.

The industrial goods index shed 0.2 per cent due to major price depreciation in Dangote Cement Plc while losses in 11 Plc and Japaul Oil and Maritime Services Plc dragged the oil and gas index lower by 0.02 per cent.

On the flip side, the consumer goods index emerged the lone gainer, up by 0.1 per cent on the back of buying interest in Dangote Flour Mills Plc and Dangote Sugar Refinery Plc.

Investor sentiment strengthened to 1.0x from the 0.3x recorded on Tuesday as 21 stocks appreciated against 21 decliners.

The top performers were Beta Glass Plc, Livestock Feeds Plc and Eterna Plc with respective gains of 9.97 per cent, 6.78 per cent and 5.13 per cent.

Goldlink Insurance Plc, Chams Plc and Japaul Oil and Maritime Services were the top three losers, shedding 10 per cent, 9.43 per cent and 9.09 per cent, respectively.

“With the Relative Strength Index of the ASI at 28.4 – below the oversold region – and the strong investor sentiment, we anticipate a rebound in the near term,” analysts at Afrinvest said.

They added that the possibility of sustained sell-offs in subsequent trading sessions this week was not ruled out.

Related Post

Leave a Reply

Your email address will not be published. Required fields are marked *

amehnews greetings