Equities market extends losing streak, sheds N90bn over profit-taking

The Nigerian Stock Exchange (NSE) equities market segment extended bearish stance at the close of trading on Tuesday session with investors losing N90 billion.

 Accordingly, investors lost N90 billion in value as market capitalisation declined to N15.13 trillion from N15.22 trillion it opened for trading while the All Share Index (ASI) fell by 174.36 points or 0.59 per cent to 29,378.63 basis  points from 29,552.99  basis points it closed on Monday.

The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are; Total Nigeria, Flour Mills of Nigeria, Guaranty Trust Bank, Stanbic IBTC Holdings and GlaxoSmithKline Consumer Nigeria.

The chief operating officer of InvestData Consulting Limited, Mr. Ambrose Omordion said that “We expect the mixed performance to continue in the midst of profit-taking and positioning by investors taking advantage of the pullbacks, even as players interpret and analyse the impact of last week’s CRR adjustment, ahead of the full-year earnings reporting season.

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“This is also against the backdrop that capital wave in the financial market may change in the midst of the unstable economic outlook for 2020.”

He, however, said that “We see investors focusing on the upcoming of the full-year earnings season, targeting companies with strong potential to grow their dividend on the strength of their earnings capacity.”

Market breadth closed negative, with nine gainers versus 23 losers. Julius Berger recorded the highest price gain of 9.93 per cent, to close at N22.15, per share. Nigerian Aviation Handling Company (NAHCO)  followed with a gain of 9.67 per cent to close at N2.95, while Linkage Assurance appreciated by 9.62 per cent to close at 57 kobo, per share.

NEM Insurance went up by 9.09 per cent to close at N2.40, while Vitafoam Nigeria appreciated by 3.77 per cent  to close at N5.50,  per share. On the other hand, Associated Bus Company led the losers’ chart by 9.76 per cent, to close at 37 kobo, per share. GlaxoSmithKline Consumer Nigeria  followed with a decline of 9.17 per cent to close at N5.45, while Eterna shed 8.77 per cent to close at N2.60, per share.

Total Nigeria lost 8.55 per cent to close at N107.00, while Honeywell Flour Mills shed 6.78 per cent to close at N1.10, per share.