Equities reverse gain as index dips 0.05%

By Omobayo Azeez

Share trading at the Nigerian Stock Exchange (NSE) returned to the red territory as investors’ activities on Wednesday resulted into a decline by 0.05 per cent in the market value.

The fall translated to 11.68 dropped points in the equities All Share Index (ASI) which closed at 21,729.28 basis points, an equivalent of N6 billion loss in market capitalization which closed the day at N11.324 trillion from N11.330 billion it open the day.

The downturn was impacted by losses recorded in medium and large capitalised stocks, among which were Total Nigeria, MTN Nigeria, Africa Prudential, FCMB Group and GlaxoSmithKline, among others.

According to Ambrose Omordion, chief operating officer at InvestData Ltd., market players were still interpreting the outcomes of the Monetary Policy Committee (MPC) meeting.

“We expect mixed performance to continue, as market players interpret the outcome of MPC and expected impact of the stimulus package on the economy,” Omordion stated.

He added that the postponement of Annual General Meetings (AGMs) due to Coronavirus by many of the listed companies was equally taking a toll on the market.

NSE data showed that at end of the midweek session, market breadth closed positive with the emergence of 20 gaining stocks against seven declining counterparts.

Zenith Bank led the gainers with a profit of N0.80 to close at N11.75 per share while Cadbury trailed with N0.50 gain ro close at N5.65 per share.

United Bank for Africa (UBA) and WAPCO each appreciated by N0.40 to close at N4.80 and N9.50 per share respectively while PZ Cuzzons added N0.35 to close at N4.4 per share.

Conversely, Total Nigeria led decliners following a loss of N10.70 to close at 96.30 per share. Others include MTN Nigerai, AFRIPRUD, First City Monument Bank and Glaxosmithkline, losing N3, N0.39, N0.06 and N0.05 to close at N100, N3.47, N1.50 and N3.80 per share respectively.

Similarly, the volume of shares traded declined by 29.27 per cent as investors bought and sold 233.47 million shares worth N2.24 billion in 3,874 deals, in contrast with 330.10 million shares valued at N3.57 billion transacted in 4,561 deals on Tuesday.

Transactions in the shares of Guaranty Trust Bank topped the activity chart with 49.68 million shares valued at N847.78 million.

Zenith Bank followed with 44.70 million shares worth N522.19 million, while Access Bank accounted for 44.18 million shares valued at N250.26 million.

UBA sold 23.25 million shares worth N109.897 million, while FBN Holdings traded 18.57 million shares valued at N74.66 million.