Stocks Lose N563bn In 3 Days

The Nigerian stock market recorded its third consecutive day of negative close this week on Wednesday, as bargain hunters failed to provide support for oversold stocks

This week, the market has lost about N563 million as weak sentiment at the Nigerian stock market kept gains in check. The market opened this week with a capitalization of N66.352 trillion. This week, the market has decreased by 0.98 per cent.

On Wednesday, the market decreased by 0.44 per cent. It was majorly caused by investors who sold shares of MRS which decreased from preceding day’s high of N178 to N162, losing N16 or 8.99 per cent of its day-open value.

Other major laggards on Wednesday are Livestock Feeds which dropped from N9.40 to N8.46, losing 94 kobo or 10 percent.

Also, Etranzact decreased from N5.85 to N5.30, losing 55 kobo or 9.40 per cent. Coronation Insurance dropped from N2.59 to N2.35, losing 24 kobo or 9.27 per cent, while May & Baker share price also dipped from N8.70 to N8, losing 70 kobo or 8.05 per cent.

This month it has decreased by 2.70 percent, thereby moderating the record positive returns this year to 1.93 per cent.

As a result of persisting negative sentiments, the Nigerian Exchange Limited (NGX) All-Share Index (ASI) and equities market capitalisation decreased further from 105,360.19 points and N66.068 trillion to 104,915.13 points and N65.789 trillion.

In 12,012 deals, investors exchanged 1,366,555,194 shares valued at N12.374 billion. Sovereign Trust Insurance, Fidelity Bank, Access Holdings, Jaiz Bank and Zenith Bank were actively traded stocks on Wednesday.

The market extended losses to a third straight session on Wednesday, as losses in MRS Oil Nigeria Plc and 36 others pulled the overall market capitalization lower by N288 billion.

As a result, the All-Share Index declined by 460.56 points, representing a loss of 0.44 per cent to close at 104,915.13 points. Also, market capitalization shed N288 billion to close at N65.790 trillion.

The downturn was driven by price depreciation in large and medium capitalised stocks amongst which are; MRS Oil Nigeria, Aradel Holdings, Transnational Corporation (Transcorp), Oando and Africa Prudential.

On market outlook, analysts at Afrinvest Limited said, “we anticipate the bourse to extend the bearish close, owing to lack of positive triggers.”

Also, the market breadth closed negative, as 13 stocks gained relative to 37 losers. Julius Berger emerged the highest price gainer of 8.47 per cent to close at N137.00, per share. Omatek Ventures followed with a gain of 6.15 per cent to close at 69 kobo, while UPDC rose by 2.69 per cent to close at N3.05, per share.

Wema Bank increased by 2.43 per cent to close at N10.55, while Unilever Nigeria added 2.12 per cent to close at N38.50, per share. On the other side, Livestock Feeds led the losers’ chart with 10 per cent to close at N8.46, per share. eTranzact International followed with a decline of 9.40 per cent to close at N5.30, while Wapic Insurance shed 9.27 per cent to close at N2.35, per share.

MRS Oil depreciated by 8.99 per cent to close at N162.00, while May & Baker Nigeria declined by 8.05 per cent to close at N8.00, per share.

Meanwhile, the total volume traded rose by 290.46 per cent to 1.367 billion units, valued at N12.375 billion, and exchanged in 12,012 deals. Transactions in the shares of Sovereign Trust Insurance led the activity with 1.010 billion shares worth N989.016 million. Fidelity Bank followed with 42.796 million shares valued at N723.151 million, while Access Holdings traded 30.614 million shares valued at N698.020 million.

Jaiz Bank traded 23.951 million shares worth N85.037 million, while Zenith Bank traded 21.631 million shares worth N1.024 billion.