Stock market reverses positive streak as index plunge by N28b

Following price losses suffered by most blue-chip stocks, the bears upstaged the bulls on the equities sector of the Nigerian Stock Exchange (NSE), causing market capitalisation to depreciate by N28 billion.

Yesterday, the All-share index also dropped 57.27 points or 0.21 per cent to 27,058.62 points. Accordingly, investors lost N28 billion in value as market capitalisation went down to N13.186 trillion.

The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which were; MTN Nigeria, Conoil, PZ Cussons Nigeria, NCR Nigeria, and Union Bank of Nigeria (UBN).

Speaking on market’s performance, the Chief Operating Officer of InvestData Consulting Limited, Ambrose Omordion, said: “these are signs of low confidence and cautious trading as the nation’s economy remains unpredictable with the government yet to provide a direction, even as unfavourable economic statements and actions daily hit the market. These make a mess of some seemingly positive macroeconomic indices in recent times.”

He however assured that with the ongoing induction for the ministers-designate, preparatory to the inauguration of the new cabinet, it is likely that real governance will address the prevailing socio-political and economic issues by way of policy formulation and implementation.

“This is expected to improve Nigeria’s economic situation through effective coordination of monetary and fiscal policy, even if this will depend largely on who is assigned what portfolio in the new cabinet.”

Further breakdown of Tuesday’s transactions showed that market breadth closed positive, 27 stocks posted gains while 10 stocks declined. Oando and Transnational Corporation of Nigeria (Transcorp) recorded the highest price gain of 10 per cent, each to close at N3.85 and 99 kobo, respectively, while Chams followed with 9.52 per cent to close at 23 kobo, per share.

Berger Paints rose 9.49 per cent to close at N7.50, and UACN 9.38 per cent to close at N5.25, per share.

On the other hand, Cutix led the losers’ chart with 9.62 per cent to close at N1.41, while PZ Cussons, and Union Diagnostic & Clinical Services followed with 8.33 per cent each to close at N5.50 and 22 kobo, per share, respectively.

May and Baker Nigeria lost 6.83 per cent to close at N1.91, while Honeywell Flour Mills shed 6.06 per cent to close at 93 kobo, per share.

The total volume traded declined by 16.39 per cent to 209.62 million shares, worth N3.24 billion, traded in 3,743 deals. Transactions in the shares of Transcorp topped the activity chart with 43.59 million shares valued at N42.73 million. Guaranty Trust Bank followed with 42.97 million shares worth N1.14 billion, while Zenith Bank traded 34.11 million shares valued at N591.99 million.

Ecobank Transnational Incorporated (ETI) traded 24.21 million shares valued at N148.56 million, while FBN Holdings transacted 6.32 million shares worth N31.36 million.