Negative trend persist as stocks plummet 1.6%

Equities segment of the Nigerian Stock Exchange began trading for the week on a negative note, following profit taking activities in Nestle Nigeria Plc (-8.3%) and Eco Transnational Incorporated (-3.4%) and losses in Nigerian Breweries (-5.6%).

Consequent on this, the All Share Index (ASI) retreated by 1.6 percent to 30,531.69 points as year-to-date return further dipped to -2.9 percent while market capitalisation declined by N149.7 billion to N11.5 trillion.

However, activity level improved as volume and value traded rose by 545.7 percent and 16.6 percent to 1.7 billion units and N3.7 billion respectively.

Across sectors, performance was bearish as all sector indices under declined. The Consumer Goods index declined the most, shedding 4.9 percent following 8.2, 5.6 and 9.8 percent losses in Nestle, Nigerian Breweries and Dangote Flour respectively.

The Industrial Goods index trailed, retreating further by 3.0 percent following sustained sell pressures in Betaglass (-9.9%) and Cement Company of Northern Nigeria (-9.8%).

Similarly, Oil and Gas index closed in the red, reversing its positive performance by 1.4 percent as investors took profit in Oando (-9.7%) and Eterna (-9.4%).

Furthermore, the Insurance and Banking indices declined, inching southwards by 0.5 percent and 0.4 percent respectively following sustained losses in Mutual Benefit Assurance (-9.1%), Cornerstone Insurance (-4.7%), Eco Transnational Incorporated (-3.4%) and FBN Holdings (-2.4%).

Investor sentiment as measured by market breadth (advance/decline ratio) weakened to 0.8x from 0.9x recorded in the previous trading session as 12 stocks advanced against 19 stocks that declined.

The top outperforming stocks were McNichols(+10.0%), Berger (+9.7%) and Ikeja Hotel (+9.6%) while Union Diagnostic and Clinical Services (-10.0%), Betaglass (-9.9%) and Dangote Flour (-9.8%) led the laggards.

On outlook for the week, equities market analysts at Afrinvest said “We expect the negative performance recorded in today’s trading session to persist throughout the week as investors continue to book their profit as earning season winds up.”

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