By OLUSHOLA BELLO, Lagos –
The Nigerian equities market opened the new week yesterday with a decline of N46 billion on weak investor sentiments. In summary, the All Share Index (ASI) shed 132.50 absolute points, representing a decline of 0.38 per cent to close at 34,873.07 points.
Similarly, the market capitalisation shed N46 billion, to close at N12.022 trillion. The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are; Seplat, Nigerian Breweries, Presco, Wapco and Oando.
The chief operating officer of InvestData Limited, Mr. Ambose Omordion said that “Technically, the market has been weak since mid-August to data as volatility and market correction continues due to profit booking by traders and investors who are indifferent to positive economic data released by NBS recently.
“This is however not unexpected given that September is a month when investors, most of who are of productive age, pay school fees at home and abroad. That is why this is referred as the “September effect.” He however said that investors will reposition ahead of September month end and earnings season in October, urging investors to position in stages in valued stocks with high upside potentials that had suffered decline in recent correction on the exchange as many are still undervalued.
Similarly, market breadth closed negative with 14 gainers against 18 losers. Airline Services led the gainers table by 4.92 per cent to close at N6.82 per share.
Cadbury followed with a gain of 4.66 per cent to close at N11, while CI Leasing appreciated by 4.20 per cent to close at N1.24 per share.
Also, Guaranty Trust Bank went up by 2.70 per cent to close at N38 and NEM Insurance rose by 2.52 per cent to close at N1.22 per share.
On the other hand, Neimeth led the laggards’ table by 8.57 per cent each, to close at 64 kobo per share. Seplat trailed with a loss of five per cent to close at N456.76, while Oando declined by 4.96 per cent to close at N5.75 per share. Cutix declined by 4.76 per cent to close at N2.60, while Transcorp shed 4.51 per cent to close at N1.27 per share.
However, activity level remained mixed as volume traded rose 1.6 per cent to 162.74 million units while value traded depreciated by 48 per cent to N1.54 billion. Transactions in the shares of Access Bank topped the activity chart with 35.39 million shares valued at N354.24 million. Meyer Paints followed with 18.91 million shares worth N13.24 million, while Fidelity Bank traded 18.61 million shares valued at N23.99 million.