Equities market commences weekly trading with decline of 0.02%

NSE market

Temitope Adebayo

The equities market of Nigerian Exchange Limited (NGX) on Monday closed on a negative note, to halt the two consecutive days of bullish sentiment.

The downturn was due to market watchers’ sell-off sentiment in the consumer goods sector, in summary, the NGX All-Share Index (ASI) declined by 8.12 basis points, representing a drop of 0.02 per cent, to close at 39,252.89 basis points.

Consequently, the overall market capitalisation value shed N5 billion to close at N20.451 trillion.

Sector performances were mainly positive today with the Consumer Goods (-0.41 per cent) closing red, while Banking (+0.48 per cent), Oil and Gas (+0.32 per cent) and Industrial (+0.03 per cent) sectors closed in the green.

The market loss was driven by price depreciation in large and medium capitalised stocks amongst which are; Flour Mills of Nigeria, GlaxoSmithKline Consumer Nigeria, Stanbic IBTC Holding, Dangote Sugar Refinery and May and Baker Nigeria.

However, investor sentiment as measured by market breadth closed positive, as 21 stocks advanced while 15 declined.

Linkage Assurance recorded the highest price gain of 8.93 per cent to close at 61 kobo, per share.

FTN Cocoa Processors followed with a gain of 8.89 per cent to close at 49 kobo, while Mutual Benefits Assurance went up by 7.14 per cent to close at 30 kobo, per share.

Ecobank Transnational Incorporated (ETI) rose by 5.77 per cent to close at N5.50, while Universal Insurance gained five per cent to close at 21 kobo, per share.

On the other hand, GlaxoSmithKline Consumer Nigeria led the losers’ chart by 9.56 per cent to close at N6.15, per share.

Consolidated Hallmark Insurance followed with a decline of 8.62 per cent to close at 53 kobo, while Sovereign Trust Insurance lost 7.69 per cent to close at 24 kobo, per share.

May and Baker Nigeria lost 6.67 per cent to close at N4.48, while the University Press shed 6.03 per cent to close at N1.09, per share.

The total volume of trades increased by 17.0 per cent to 210.954 million units, valued at N1.384 billion, and exchanged in 3,989 deals.

Transactions in the shares of Access Bank topped the activity chart with 30.521 million shares valued at N282.145 million.

Mutual Benefits Assurance followed with 26.827 million shares worth N8.004 million, while Sovereign Trust Insurance traded 21.377 million shares valued at N5.136 million.

Universal Insurance traded 12.945 million shares valued at N2.590 million, while Honeywell FlourMills transacted 12.917 million shares worth N48.033 million.

According to analysts at Investment One research, “The equities market closed down today due to the losses recorded in the Consumer Goods sector.

“Going forward, we expect investor’s sentiments to be swayed by the search for real positive returns and developments in the interest rate space.

“We reiterate that this may be a great period to pick up some quality names with a medium to the long-term investment horizon.”

On trading activities for this week, analysts at United Capital Plc said “We expect the market to drift sideways barring any major trigger.

We anticipate some investor bias for banking stocks, as market participants position for interim dividends.”

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