Nigerian stocks extend decline on continued sell-offs as year to date gain moderates to 7.8%
Sustained profit-taking by investors extended decline at the Nigerian stock market Tuesday as benchmark index, The Nigerian Stock Exchange All-Share Index (NSEASI) shed 51bps to settle at 41,243.24 points. This just as market year-to-date gain moderated to 7.8 percent.
Losses in INTBREW (-5.0%), SEPLAT (-5.0%) and ZENITH (-2.1%) were the major drags to performance on the day. As a result, market capitalisation pared N76.3 billion in value to N15.0 trillion.
Similarly, activity level waned as volume and value traded fell 7.1 percent and 19.3 percent to 352.9 million units and N4.1 billion respectively.
JAPAUL OIL (80.3m), ZENITH (59.9m) and FBNH (24.3m) were the top traded stocks by volume while ZENITH (N1.8bn), FBNH (N301.2m) and GUARANTY (N210.7m) were the top traded stocks by value.
Sector performance remained largely negative as four of five indices declined. The oil & gas index depreciated the most, losing 2.7 percent on the back of losses in SEPLAT (-5.0%) while the banking index dipped 1.0 percent due to price depreciation in ZENITH (-2.1%) and ETI (-5.0%).
The insurance and consumer goods indices slid 0.6 percent and 0.4 percent due to sell-offs in NEM (-2.5%), LASACO (-2.8%), INTBREW (-5.0%) and NIGERIAN BREWERIES (-0.7%).
On the other hand, the Industrial Goods Index was the lone gainer, up 0.9% following gains recorded in WAPCO (+1.5%) and CCNN (+4.8%).
Investor sentiment waned today as market breath (advance/decline ratio) weakened to 0.7x from 2.0x recorded on Monday as 21 stocks advanced relative to 31 stocks that declined.
The gainers’ chart was topped by GLAXOSMITH (+10.2%), WEMA (+9.0%) and MRS OIL (+5.0%) while DIAMOND (-7.3%), ETI (-5.0%) and INTBREW (-5.0%) led the losers’ chart.
“Following another negative close today and weaker investor sentiment, we believe market performance in the near term would rebound. Our view is further buttressed by the fact that the relative strength index (RSI), a technical indicator, which measures market momentum, is currently at 33.8 close to the oversold region,” analysts at Afrinvest said.