Stock Market Index Dips Further By 0.6% On Sustained Weaker Demand

The bears continued to dominate transactions on the equity sector of the Nigerian Stock Exchange (NSE), as most blue chip stocks depreciated in price, causing the All-share index to plunge further by 0.6 per cent.

Yesterday, the All- share index shed 215.52 points, representing a decline of 0.58 per cent to close at 36,748.18 points. Also, the market capitalisation declined by N78billion to close at N13.312trillion.

The negative sentiment was impacted by losses recorded in medium and large capitalised stocks, amongst which are; Guaranty Trust Bank, Okomu Oil, FBN Holdings, Oando, and Nigerian Breweries.

Analysts from Cordros Capital, said: “in our view, the continued sell-offs call for cautious trading among investors, amidst absence of a near-term one-off positive catalyst in the short to medium term. However, still-positive macro-economic fundamentals remain supportive of gains on the long term.”

The Chief Research Officer, Investdata Consulting, Ambrose Omodion, said: “Reversal is imminent if more positive Q2 earnings reports hit the market today, considering undervalued state of equities and high yields. Investors should review their position in line with their investment goals and act as events unfold in the global and domestic environment.”

Market breadth closed negative, with 20 gainers versus 23 losers. Continental Reinsurance recorded the highest price gain of 10 per cent, to close at N1.65, while PZ Industries followed with a gain of 9.74 per cent to close at N16.90 per share.

International Breweries appreciated by 9.33 per cent to close at N41, while Japaul Oil and Maritime Services, and McNichols gained 9.09 per cent each to close at 36kobo and 72kobo per share, respectively.

On the other hand, FBN Holdings led the losers’ chart by 9.76 per cent, to close at N9.25, while Oando followed with a loss of 9.52 per cent to close at N4.75, per share.
Wema Bank declined by 8.82 per cent to close at 62kobo, while Caverton Offshore Support Group, and Consolidated Hallmark Insurance shed 7.14 per cent each to close at N1.95, and 26kobo per share, respectively.

Also, total volume traded depreciated by 11.05 per cent to 181.28 million shares worth N1.64billion, traded in 3,854 deals. Transactions in the shares of Transnational Corporation of Nigeria (Transcorp) topped the activity chart with 16.77 million shares valued at N20.64million. Zenith Bank followed with 15.15 million shares worth N361.67million, while Fidelity Bank traded 14.94 million shares valued at N29.79million.Oando traded 11.12 million shares valued at N53.63million, while Access Bank transacted 10.69 million shares worth N106.98million.

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