Selloffs in bellwethers reverse positive streak as index sheds 0.53%

Following selloffs in many bellwethers, the Nigerian equities market reversed Monday’s gaining streak at the end of yesterday’s transaction as the benchmark index dipped by 0.53 per cent.

The All Share Index (ASI) decreased by 140.06 absolute points, representing a dip of 0.53 per cent to close at 26,244.39 points. Similarly, market capitalisation also lost N68 billion to close at N12.776 trillion.

The downtrend was impacted by losses recorded in large and medium capitalised stocks, amongst which were; MTN Nigeria, Guaranty Trust Bank, Lafarge Africa, The Nigerian Aviation Handling Company (NAHCO), and United Bank for Africa (UBA).

On the market performance, Chief Operating Officer, InvestData Consulting Limited, Ambrose Omordion, said: “We expect the mixed performance to continue, as the market reacts to released numbers in expectation of more quarterly reports ahead of month-end portfolio alignments, especially as the NSE’s new lows offer investors opportunities to position for short and medium-to-long-term views.

“Given that earnings and economic news can change trend at any time, investors should keep their gaze on fundamentally sound and dividend-paying stocks for possible capital appreciation, as third quarter (Q3) numbers give insight into companies’ position and future expectations.”

However, market breadth closed positive, with 13 gainers versus 10 losers. Red Star Express recorded the highest price gain of 9.88 per cent to close at N4.45 per share. Cornerstone Insurance followed with 9.76 per cent to close at 45 kobo, while Aiico Insurance appreciated by 9.52 per cent to close at 69 kobo, per share.

GlaxoSmithKline Consumer Nigeria rose 8.62 per cent to close at N6.30, and Union Diagnostic & Clinical Services appreciated by 4.17 per cent to close at 25 kobo, per share.

On the other hand, Chams led the losers’ chart with 4.35 per cent to close at 22 kobo per share. NAHCO followed with 4.08 per cent to close at N2.35, and Lafarge Africa 4.01 per cent to close at N14.35, per share.

Guaranty Trust Bank lost 2.67 per cent to close at N25.50, while UBA shed 1.71 per cent to close at N5.75, per share.

Total volume of trade also fell by 45.67 per cent to 264.97 million shares worth N2.74 billion, traded in 2,920 deals.

Transactions in the shares of FCMB Groups topped the activity chart with 51.56 million shares valued at N82.49 million. Zenith Bank followed with 43.06 million shares worth N732.03 million, while Guaranty Trust Bank traded 42.28 million shares at N1.08 billion.

Access Bank traded 37.24 million shares worth N272.04 million, while Sterling Bank transacted 34.77 million shares at N67.99 million.