Stock market reopens bearish in July, sheds N120billion

Following price losses suffered by most blue chip stocks, transactions on the equity sector of the Nigerian Stock Exchange (NSE), re-opened on a downward note in July.

Specifically, at the close of transactions yesterday, the All-share index shed 331.63 absolute points or 0.87 per cent to close at 37,946.92 from 38,278.55 at which it opened the day’s trading. Also, the market capitalisation declined by N120billion from N13.866trillion to N13.746trillion.

The decline was impacted by losses recorded in medium and large capitalised stocks, amongst which are; Dangote Cement, Forte Oil, Nigerian Breweries, Guaranty Trust Bank, and Zenith Bank.

Reacting to the development, analysts at Afrinvest Limited said: “While small to mid-cap stocks have enjoyed bargain hunting from short-term investors, we continue to observe bearish sentiments on high capitalised stocks.

“Hence, we expect overall market performance to be bearish in subsequent sessions while emphasizing that valuations remain attractive for entry by long-term investors.”

Market breadth closed negative, with 16 gainers versus 21 losers. Aiico Insurance recorded the highest price gain of 9.84 per cent, to close at 67 kobo per share. C&I Leasing followed with a gain of 9.66 per cent to close at N2.27, while Unity Bank appreciated by 9.28 per cent to close at N1.06 per share.

Mobil Nigeria rose by 9.23 per cent to close at N199.90, while UPL gained 6.87 per cent to close at N2.49 per share.

On the other hand, Forte Oil led the losers’ chart by 9.74 per cent, to close at N29.65, while Honeywell Flour followed with a loss of 9.61 per cent to close at N2.07 per share.

Cornerstone Insurance shed 8.57 per cent to close at 32 kobo, while Daar Communication and Japaul Oil depreciated by 8.33 per cent each to close at 44 kobo and 33 kobo per share, respectively.

The total volume traded appreciated by 45.41 per cent to 256.23 million shares worth N1.86billion, traded in 3,308 deals.

Transactions in the shares of Sterling Bank topped the activity chart with 100.36 million shares valued at N138.5million. FBN Holdings followed with 23.7 million shares worth N251.11million.