Stock Market Declines Further, Sheds N59bn

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The nation’s equities market extended its bearish streak on Monday, declining further by N59bn as the market capitalisation of equities dropped to N13.078tn from N13.137tn on Friday.

The All Share Index declined by 0.45 per cent as sell-offs in Seplat Petroleum Development Company Plc, Nestlé Nigeria Plc and Stanbic IBTC Holdings Plc dragged it lower to 26,866.41 basis points.

The year-to-date loss worsened to -14.5 per cent.

Activity level rose as volume and value traded advanced by 9.2 per cent and 45.6 per cent to 151.715 million units and N1.504bn, respectively.

The most active stocks by volume were FCMB Group Plc (55.7 million units), Transnational Corporation of Nigeria Plc (17.2 million units) and FBN Holdings Plc (14.4 million units) while Nestlé (N486.1m), Dangote Cement Plc (N270m) and Guaranty Trust Bank Plc (N172.1m) led by value.

Performance across sectors was bearish as only the industrial goods index recorded gains on the back of price appreciation in Cement Company of Northern Nigeria Plc and Cutix Plc.

The oil and gas index led the laggards, declining by 4.2 per cent due to major price depreciation in Seplat and Oando Plc.

The consumer goods and insurance indices lost 1.2 per cent and 0.2 per cent, respectively, following sell pressures in Nestlé, Nigerian Breweries Plc and AXA Mansard Insurance Plc.

Major losses in Stanbic IBTC and Access Bank Plc dragged the banking index down by 0.1 per cent while the AFR-ICT index closed flat.

Investor sentiment strengthened as market breadth (advance/decline ratio) inched up to 1.1x from the 0.6x recorded on Friday.

A total of 17 gainers emerged, which were outperformed by 16 losers.

The top gainers were Courteville Business Solutions Plc, Africa Prudential Plc, Associated Bus Transport Plc, Wema Bank Plc and UACN Plc, which saw respective price appreciation of 10 per cent, 9.9 per cent, 8.8 per cent, 8.6 per cent and 8.4 per cent.

The top five losers were Cornerstone Insurance Plc, Seplat, Cadbury Nigeria Plc, Caverton Offshore Services Plc and Oando as their respective share prices shed 10 per cent, 6.8 per cent, 5.7 per cent, 5.4 per cent and 2.7 per cent.

Analysts at Afrinvest Securities Limited said the market was expected to remain bearish as the broader investor sentiment remained weak.

  • Source: The Punch, October 8, 2019

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