Equities market capitalisation loses N210bn despite improved earnings

Temitope Adebayo

Despite improved earnings reports of 558.04 points or 1.85 per cent to close at 29,668.73 on Wednesday, the bears remained on the rampage on the Nigerian Stock Exchange (NSE), with the market capitalisation shed N210 billion or 1.85 per cent in six hours to close at N11.143 trillion against N11.353 trillion recorded on Tuesday.

At the close of yesterday trading activities, the All-Share Index dropped below the 30,000 mark due to persistent sell pressure.

Analysis of the price movement table shows that Dangote Cement recorded the highest loss for the day, shedding N3 to close at N190 per share.

International Breweries trailed with a loss of N2.50 to close at N23.50, while Cement Company of Northern Nigeria lost N1.75 to close at N16.20 per share.

Guaranty Trust Bank went down by N1 to close at N35, while Zenith Bank declined by 90k to close at N20.40 per share.

Conversely, Nestle led the gainers’ table during the day, appreciating by N50 to close at N1,450 per share.

Nigerian Breweries followed with a gain of N3.10 to close at N60, while Oando advanced by 10k to close at N4.80 per share.

Sterling Bank added 9k to close at N2.48, while Fidelity Bank increased by 6k to close at N1.87 per share.

In spite of the drop in market indices, the volume of shares traded inched by 43.94 per cent with an exchange of 542.58 million shares worth N5.66 million in 4,146 deals.

This was in contrast with a turnover of 376.95 million shares valued at N4.54 million exchanged in 4,018 deals on Tuesday.

Sterling Bank PLC was the most active stock, trading 144.19 million shares worth N348.93 million.

FCMB Group followed with an account of 68.72 million shares valued at N125.63 million, while FBN Holdings exchanged 55.02 million shares worth N414.96 million.

Zenith Bank sold a total of 35.70 million shares valued at N739 million, while Access Bank accounted for 35.40 million shares worth N207.35 million.

Chief Operating Officer, InvestData Ltd., Mr Ambrose Omordion, attributed the persistent lull to low confidence and liquidity in the stock market.

Omordion said that ongoing volatility would continue as investors and fund managers rebalance their portfolios, with eyes fixed on political space and ongoing full year company earnings position and post-election market dynamics.

He said that investors should review their positions in line with their investment goals, the strength of the company numbers and act as events unfold in the global and domestic environment.