Stock market reverts to losing trend, sheds N27.9bn

The Nigerian stock market reverted to its bearish trend on Tuesday as it lost N27.9bn following sell-offs witnessed in large cap stocks.

The market capitalisation of equities declined from N13.214tn on Monday to N13.186tn on Tuesday as the All Share index depreciated by 0.21 per cent to close at 27,058.62 basis points.

The year-to-date loss weakened to -13.9 per cent as major sell-offs were witnessed in MTN Nigeria Communications Plc, PZ Cussons Plc and Union Bank Nigeria Plc.

Activity level declined as volume and value traded fell by 16.4 per cent and 22.4 per cent, respectively to 209.621 million units and N3.236bn.

The most active stocks by volume were Transnational Corporation of Nigeria Plc (43.6 million units), Guaranty Trust Bank Plc (43 million units) and Zenith Bank Plc (34.1 million units) while GTB (N1.1bn), Zenith Bank (N592m)and Nestlé Nigeria Plc (N526.9m) led by value.

Performance across sectors was largely positive as all sectors appreciated, except the AFRI-ICT index.

The AFRI-ICT index was the lone decliner as it lost 2.6 per cent following sell pressures in MTN.

Major price appreciation in Access Bank Plc, FBN Holdings Plc and Zenith Bank Plc led to a 1.88 per cent gain in the banking index.

The oil and gas index rose by 0.99 per cent, buoyed by improved performance in Oando Plc.

Similarly, the industrial goods index appreciated by 0.56 per cent on the back of gains recorded in Dangote Cement Plc and Lafarge Africa Plc.

The insurance index advanced, up by 0.59 per cent due to buying interest in Wapic Insurance Plc and Law Union and Rock Insurance Plc.

Major gains in Nestle and Nigerian Breweries Plc drove the consumer goods index up by 0.22 per cent.

Investor sentiment, as measured by market breadth (advance/decline ratio), further advanced to 2.7x from 1.3x recorded on Monday as 27 gainers emerged against 10 losers.

The top gainers were Oando Plc, Transnational Corporation of Nigeria Plc, Chams Plc, Berger Paints Plc and UACN Property Development Company Plc, which recorded respective gains of 10 per cent, 10 per cent, 9.52 per cent, 9.49 per cent and 9.38 per cent.

Leading the losers were Cutix Plc, PZ Cussons, Union Diagnostic and Pharmaceutical Services Plc, May and Baker Nigeria Plc and Honeywell Flour Mills Plc, whose share prices depreciated by 9.62 per cent, 8.33 per cent, 8.33 per cent, 6.83 per cent and 6.06 per cent, respectively.

Analysts at Afrinvest Securities Limited said they maintained their bearish stance for the equities market as investor sentiment remained weak.
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