Equities Market Opens Week In Decline With N111bn Loss

The Nigerian equities market yesterday began the trading week with a bearish sentiment as investors’ investments declined by N111 billion.

Precisely, the All-Share Index declined by 227.68 points, representing a loss of 0.24 per cent to close at 96,205.85 points. Also, market capitalisation dipped by N111 billion to close at N55.283 trillion.

The downturn was driven by price depreciation in large and medium capitalised stocks amongst which are; Transcorp Power, Julius Berger Nigeria, PZ Cussons Nigeria, NASCON Allied Industries and Nigerian Exchange Group.

Looking forward, United Capital Plc said “the equities market is expected to retain its buy interest as investors cherry-pick undervalued stocks. However, given the sentiment that rates might have peaked in the fixed income and money markets, and investors locking in on current rates, we expect some bearish undertone to persist in the equities market.

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“Nevertheless, the Bulls will remain incentivized to persist in bargain hunting, given the tremendous mid-long-term opportunities in the equities market. Fund managers and businesses may begin to entertain mid-long-term investment objectives, cherry-picking only sound equities with strong fundamentals and ongoing corporate actions. This strategy will maximise market opportunities, thereby optimising portfolio returns.”

As measured by market breadth, market sentiment was positive, as 34 stocks gained relative to 20 losers. Eterna and Tantalizer emerged the highest price gainer of 10 per cent each to close at N33.00 and 77 kobo respectively, while Oando followed with a gain of 9.95 per cent to close at N89.50, per share.

FTN Cocoa Processors rose by 9.93 per cent to close at N1.66, while UAC of Nigeria (UACN) advanced by 9.81 per cent to close at N22.95, per share. On the other side, Julius Berger Nigeria led others on the losers’ chart with 10 per cent to close at N153.45, per share. Transcorp Power followed with a decline of 9.99 per cent each to close at N301.70, while McNichols declined by 9.40 per cent to close at N1.35, per share.

University Press lost 8.99 per cent to close at N2.43, while Cutix depreciated by 6.00 per cent to close at N2.82, per share.

The total volume of trades increased by 97.29 per cent to 774.38 million units, valued at N14.647 billion, and exchanged in 10,412 deals. Transactions in the shares of Jaiz Bank led the activity with 247.044 million shares worth N537.123 million. Zenith Bank followed with a volume of 173.485 million shares valued at N6.420 billion, while FBN Holdings (FBNH) traded 41.504 million shares valued at N967.496 million.

Guaranty Trust Holding Company (GTCO) traded 33.922 million shares worth N1.540 billion, while Japaul Gold & Ventures traded 27.801 million shares worth N74.787 million.