Cautious Stock Trading Greets November As Capitalisation Declines By N246bn

The Nigerian stock market resumed trading for the month of November on a bearish note as sell pressure in Aradel Holdings Plc and 36 others pulled the overall capitalization lower by N246 billion.

The All Share Index (ASI) lost by 387.35 points, representing a decline of 0.25 per cent to close at 153,739.11 points. Also, market capitalisation shed N246 billion to close at N97.583 trillion.
The overall downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are; Aradel Holdings, Northern Nigeria Flour Mills (NNFM), Unilever Nigeria, Honeywell Flour Mills and Dangote Sugar Refinery.

On market outlook, Cowry Asset Management Limited said, “we expect the market to trade mixed in the near term, with direction to be shaped by investor reaction to outcome of fixed-income yields, fund rotation into safer assets, and the ongoing earnings season.

“In our view, the market currently needs a strong catalyst, possibly in the form of improved macro indicators or stronger-than-expected corporate results to reignite a bullish spark and restore positive sentiment on the NGX. We continue to advise investors to take position in fundamentally sound stocks with strong earnings power and returns.”

Market breadth reflected the negative sentiment, with 37 declining stocks outnumbering 19 gainers Union Dicon Salt recorded the highest price gain of 9.93 per cent to close at N7.75, per share. Omatek Ventures followed with a gain of 9.92 per cent to close at N1.33, while Nigerian Aviation Handling Company (NAHCO) up by 7.62 per cent to close at N113.00, per share.

International Breweries rose by 6.35 per cent to close at N13.40, while Champion Breweries appreciated by 6.33 per cent to close at N15.95, per share.

On the other hand, Honeywell Flour Mills led the losers’ chart by 10 per cent to close at N18.00, per share. NNFM followed with a decline of 9.98 per cent to close at N84.30, while Aradel Holdings shed 9.21 per cent to close at N710.00 per share.

Japaul Gold & Venture declined by 7.95 per cent to close at N2.20, while Ikeja Hotels was down by 7.71 per cent to close at N17.35 per share.

The total volume traded depreciated by 87.94 per cent to 627.503 million units, valued at N25.000 billion, and exchanged in 36,425 deals. Transactions in United Bank for Africa (UBA) shares topped the activity chart with 136.839 million shares valued at N5.542 billion. Aso Savings & Loans followed with 108.946 million shares worth N120.409 million, while Access Holdings traded 68.159 million shares valued at N1.624 billion.

Guaranty Trust Holding Company (GTCO) traded 49.829 million shares valued at N4.550 billion, while Zenith Bank sold 31.807 million shares worth N2.004 billion.