Sell pressure costs equity investors N49bn in two days

Omobayo Azeez

The Nigerian equities market opens Wednesday with a tailwind of sell pressure by investors that has seen N49 billion shaved off the value of stocks in the last two trading sessions as the desire to sell outweighed demand on the floor of the Nigerian Stock Exchange (NSE).

Market operations resumed on a bearish note on Monday with a loss of N28 billion or 0.21% and this was sustained on Tuesday when additional N21 billion or 0.16% depreciation was recorded.

Consequently, the NSE All-Share Index (NSEASI), which is the common value-based index that tracks share prices at the Nigerian Stock Exchange, shed 41.96 points to close the day lower at 27,047.88 bps while market capitalisation lost N21 billion to close lower at N13.158 trillion on Tuesday.

Although, activity level increased as volume and value traded appreciated by 25.38% and 13.23% with 364.218 million shares valued at N4.863 billion traded in 4,629 transactions.

Market breadth also closed positive with 18 gainers emerging against 12 declining stocks and 12 others that ended the session with unchanged prices.

Dangote Flour PLC led the gainers’ chart with N1.25 profit to close at N22.25 per share; MTN Nigeria PLC followed with N0.45 to close at N138.50; while FBNH, Guaranty Trust Bank and Nigerian Breweries gained N0.35, N0.35 Ns N0.20 to close at N5, N26.85 and N50.75 respectively.

On the contrary, Nestlé PLC topped the losers’ list with N56 loss to close at N1,080. CCNN followed with N1.15 loss to close at N16.25 per share while Dangote Cement PlC followed suit with a loss of N0.70 to close at N155 per share.

Other losers include Forte Oil PLC which lost N0.50 to close the day at N14 and UACN, losing N0.40 to close lower at N6.20 pee share.

Most active stocks, in terms of volume include GTB, Courtville and Access Bank which traded 78.637 million, 49.017 million and 43.876 million shares at N2.116 billion, N10.704 million and N301.921 million respectively.

Analysts have predicted gloomy weeks ahead, although not ruling out the possibility occasional bearish moments to be spurred by bargain hunters.

Analysts at Afrinvest said, “Over the coming week, we expect the market to remain pressured given global risk-off sentiments and weak domestic participation.

“Nonetheless, we note that valuations remain attractive, while price deteriorations have resulted in expected dividend yields on some stocks rising significantly. Hence, we advise long-term investors to consider taking positions in such fundamentally justified equities, while short-term investors should tread the cautious trading path.”