Bears maintain dominance as index depreciates further by 0.6%

Price losses incurred by most blue-chip stocks dragged the All-share index further by 0.2 per cent at the end of transactions yesterday, on the Nigerian Stock Exchange (NSE).

Specifically, the index fell by 42.26 points or 0.16 per cent to 27,047.58 points. Accordingly, investors lost N21 billion in value as market capitalisation declined to N13.158 trillion.

The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are; Nestle Nigeria, Cement Company of Northern Nigeria (CCNN), Dangote Cement, Forte Oil and UAC of Nigeria (UACN).

The Chief operating officer of InvestData Consulting Limited, Ambrose Omordion stated that the stock market extended its downtrend on a high selling pressure due to investors’ concerns over the socio-political and economic situation in the country, especially with issues like heightening insecurity.

He noted, “We expect this trend to continue as bargain hunters take advantage of low valuation to trigger buying interest once the direction is given through economic policies.”

However, market breadth closed positive, with 18 gainers versus 12 losers. UACN Property Development Company recorded the highest price gain of 9.26 per cent, to close at N1.18, per share.

FBN Holdings followed with a gain 7.53 per cent to close at N5.00, while Dangote Flour Mills appreciated by 5.95 per cent to close at N22.25, per share.

Wapic Insurance went up by 5.41 per cent to close at 39 kobo, while Courteville Business Solution appreciated by 4.76 per cent to close at 22 kobo, per share. On the other hand, Thomas Wyatt Nigeria led the losers’ chart by 9.52 per cent, to close at 38 kobo, per share.

Continental Reinsurance followed with a decline of 7.36 per cent to close at N1.51, while CCNN went down by 6.61 to close at N16.25, per share.

University Press lost 6.25 per cent to close at N1.05, while UACN shed 6.06 per cent to close at N6.20, per share. The total volume traded rose by 25.38 per cent to 364.22 million shares, worth N4.86 billion, and traded in 4,629 deals.

Transactions in the shares of Guaranty Trust Bank topped the activity chart with 78.64 million shares valued at N2.115 billion. Courteville Business Solution followed with 49.02 million shares worth N10.70 million, while Access Bank traded 43.88 million shares valued at N301.92 million.

Zenith Bank traded 40.3 million shares valued at N732.93 million, while FBN Holdings transacted 36.51 million shares worth N179.85 million.