Nigeria bourse extends bearish sentiment as market CAP sheds N20bn

Trading on the floor of the Nigerian Stock Exchange ended on a negative note on Tuesday with market capitalisation shedding N20 billion to close lower at N13.158 trillion against N13.178 trillion achieved on Monday.

Also, the All-Share Index (ASI) dipped 42.26 points or 0.16 percent to close at 27,047.58, compared with 27,089.84 posted on Monday.

The downturn was impacted by losses recorded in medium and large capitalised stocks, among which are Nestle Nigeria, Cement Company of Northern Nigeria (CCNN), Dangote Cement, Forte Oil and UAC of Nigeria (UACN).

The Chief Operating Officer, InvestData Ltd., Mr Ambrose Omordion, attributed the decline to persistent sell pressure, caused by investors’ concerns over the socio-political and economic situation in the country.

Omordion also attributed the development to issues relating to heightening insecurity in the country.

“We expect this trend to continue as bargain hunters take advantage of low valuation to trigger buying interest once the direction is given through economic policies,” he said.

However, market breadth closed positive, with 18 gainers compared with 12 losers.

Thomas Wyatt Nigeria led the losers’ chart by 9.52 percent, to close at 38k per share.

Continental Reinsurance followed with a decline of 7.36 percent to close at N1.51, while CCNN lost 6.61 to close at N16.25 per share.

University Press dipped 6.25 percent to close at N1.05, while UACN shed 6.06 percent to close at N6.20 per share.

Conversely, UACN Property Development Company recorded the highest price gain of 9.26 percent, to close at N1.18, per share.

FBN Holdings followed with a gain 7.53 percent to close at N5, while Dangote Flour Mills appreciated by 5.95 percent to close at N22.25 per share.

Wapic Insurance appreciated by 5.41 percent to close at 39k, while Courteville Business Solution appreciated by 4.76 percent to close at 22k per share.

In spite of the drop in market indices, the total volume of shares traded rose by 25.38 percent with an account of 364.22 million shares worth N4.86 billion traded in 4,629 deals.

This was in contrast to a total of 290.49 million shares, valued at N4.29 billion achieved in 2,900 deals on Monday.

Transactions in the shares of Guaranty Trust Bank topped the activity chart with 78.64 million shares valued at N2.115 billion.

Courteville Business Solution followed with an exchange of 49.02 million shares worth N10.70 million, while Access Bank traded 43.88 million shares, valued at N301.92 million.

Zenith Bank sold 40.3 million shares worth N732.93 million, while FBN Holdings transacted 36.51 million shares valued at N179.85 million.