NGX reopens bearish as GSK, CHI others drag index by 0.02%

Following a sell-off in most blue-chip stocks, especially GlaxoSmithKline (GSK) and Consolidated Hallmark Insurance (CHI), the Nigerian Exchange Limited (NGX) reopened on a downturn note yesterday, causing the All-Share Index (ASI) to decline by 0.02 per cent.

Specifically, the ASI depreciated by 8.12 absolute points, representing a drop of 0.02 per cent, to close at 39,252.89 points. Similarly, the overall market capitalisation dipped by N5 billion to close at N20.451 trillion.

The downturn was driven by price depreciation in large and medium capitalised stocks amongst which are; Flour Mills of Nigeria, GlaxoSmithKline Consumer Nigeria, Stanbic IBTC Holding, Dangote Sugar Refinery and May and Baker Nigeria.

Analysts at United Capital Plc said: “We expect the market to drift sideways barring any major trigger. We anticipate some investor bias for banking stocks, as market participants position for interim dividends.”

Vetiva Dealings and Brokerage said: “As expected market traded mixed as investors cherry-pick attractive counters across the board from small to large-cap names in the banking space.

“We expect this to filter into tomorrow’s trading session amid weak activity levels.”

However, investor sentiment closed positive, as 21 stocks advanced, while 15 declined. Linkage Assurance recorded the highest price gain of 8.93 per cent to close at 61 kobo while FTN Cocoa Processors followed with a gain of 8.89 per cent to close at 49 kobo. Mutual Benefits Assurance went up by 7.14 per cent to close at 30 kobo.

Ecobank Transnational Incorporated (ETI) rose by 5.77 per cent to close at N5.50 kobo, while Universal Insurance gained five per cent to close at 21 kobo.
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On the other hand, GlaxoSmithKline Consumer Nigeria led the losers’ chart with 9.56 per cent to close at N6.15 kobo. Consolidated Hallmark Insurance followed with a decline of 8.62 per cent to close at 53 kobo, while Sovereign Trust Insurance lost 7.69 per cent to close at 24 kobo.

May and Baker Nigeria lost 6.67 per cent to close at N4.48, while University Press also shed 6.03 per cent to close at N1.09, per share.

The total volume of trades increased by 17.0 per cent to 210.954 million units, valued at N1.384 billion, and exchanged in 3,989 deals.

Transactions in the shares of Access Bank topped the activity chart with 30.521 million shares valued at N282.145 million. Mutual Benefits Assurance followed with 26.827 million shares worth N8.004 million, while Sovereign Trust Insurance traded 21.377 million shares valued at N5.136 million.

Universal Insurance traded 12.945 million shares valued at N2.590 million, while Honeywell Flour Mills transacted 12.917 million shares worth N48.033 million.
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