Equities tank, record N56bn loss

Nigerian equities reopened on Monday with considerable sell pressure on leading stocks in the main sectors of banking, oil and gas and telecommunications, pushing the overall market position to a net loss of N56 billion.

Average return yesterday at the Nigerian Stock Exchange (NSE) stood at -0.44 per cent, largely due to losses suffered by large-cap stocks, such as Nigeria’s most capitalised stock, MTN Communications Nigeria; largest financial stock, Guaranty Trust Bank(GTBank); second largest financial institution, Zenith Bank and leading downstream oil and gas stock, 11 Plc, formerly Mobil Oil Nigeria.

The All Share Index (ASI)- value-based index that tracks share prices at the Exchange, declined from its opening index of 24,306.36 points to close at 24,200.60 points. Aggregate market value of all quoted equities dropped from its opening value of N12.680 trillion to close at N12.624 trillion.

Average year-to-date return depressed further to -9.8 per cent, with 1.1 per cent lost so far this month.

With 11 decliners to 14 advancers, most sectoral indices also closed negative. The NSE Oil & Gas Index declined by 1.9 per cent. The NSE Banking Index dropped by 1.7 per cent while the NSE Insurance Index dipped by 0.4 per cent. Meanwhile, the NSE Industrial Goods appreciated by 0.3 per cent while the NSE Consumer Goods Index inched up by 0.1 per cent.

The negative overall market position was driven largely by losses recorded by four leading stocks. 11 led the losers with a drop of N19.20 to close at N173.40. MTN Nigeria followed with a loss of N1.10 to close at N115. Zenith Bank lost 50 kobo to close at N16.20 while GTBank declined by 45 kobo to close at N22.

Total turnover stood at 231.2 million shares worth N2.2 billion n respectively. Sterling Bank was the most active stock with a turnover of 77.55 million shares worth N96.77 million. FCMB Group followed with 33.28 million shares worth N63.21 million while Fidelity Bank placed third with N27.06 million valued at N48.18 million.

“We expect bargain hunting activity to resurface this week given that the equities market remains fairly attractive,” Afrinvest Securities stated.

Meanwhile, NASCON Allied Industries led the gainers with a gain of 50 kobo to close at N10. BUA Cement, Africa Prudential and C & I Leasing rallied 25 kobo each to close at N41.20, N4.25 and N4.20. Caverton Offshore Support Group rose by 14 kobo to close at N1.95 while Neimeth International Pharmaceuticals chalked up 13 kobo to close at N1.52 per share.