By Michael Eboh
The bearish trend on the Nigerian Stock Exchange (NSE) degenerated to an alarming level, Wednesday, as the value of listed equities dipped further by N138.46 billion.
The drop in the value of listed equities, was brought about by huge losses on the share prices of majority of the quoted companies, with only five stocks recording share price gain.
This forced down the value of key market indices, as the market capitalisation which opened at N5.314 trillion descended by 2.61 per cent to close at N5.176 trillion, while the All-share index shed 604.02 basis points to close at 22,580.23 points, from 23,184.25 points at which it opened.
A market analyst, Mr. Amaeze Olisaemeka, General Manager, Apex Securities, blamed the recent sack of the managing directors of five of the nationâ€™s banks and the ongoing probe of the remaining banks by the Central Bank of Nigeria (CBN) for the continuous decline in the key market indices.He disclosed that the bearish trend will continue until the outcome of the probe of the remaining banks is known.
He said, â€œThe Banking sub-sector accounts for about 62 per cent of the capital market, so any thing that affects the bank, will certainly have a run in the capital market in particular and the economy in general. I expect that downturn recorded in the currently recorded in the capital market will continue, considering the fact that 14 other banks are being investigated, and that some of them might be found culpable, as well. There is fear in the market, investors are panicking and this is seriously affecting the market negatively. All these would not have happened if the CBN had done all the audit at once, instead of in piecemeal.â€
Nestle Nigeria Plc led on the gainersâ€™ chart, with a share price gain of N7.00 to close at N205.00 per share, followed by Glaxo SmithKline Consumer Plc with a gain of N0.87 to close at N18.38 per share and Unilever Nigeria Plc garnered N0.84 to close at N17.69 per share.
Shares of Cement Company of Northern Nigeria Plc rose by N0.40 to close at N8.53 per share, while Vitafoam Nigeria Plc recorded a share price appreciation of N0.17 to close at N3.65 per share.
On the contrary, 70 stocks recorded share price loss, with Total Nigeria Plc leading the pack, dropping by N6.90 to close at N131.33 per share, Guinness Nigeria Plc followed with a loss of N6.00 to close at N136.00 per share and Mobil Oil Nigeria Plc dipped by N5.70 to close at N108.30 per share.
Other share price losers include: Skye Shelter Fund N4.75, Oando Plc N4.15, African Petroleum Plc N2.80, Benue Cement Company Plc N1.92, UAC Nigeria Plc N1.75, Julius Berger Nigeria Plc N1.34, Flour Mills Nigeria Plc N1.07 among others.
Equity trading also dropped by 33.12 per cent, as a turnover of 407.82 million shares valued at N2.17 billion was recorded in 5,481 deals, in contrast to the previous dayâ€™s turnover of 609.77 million shares valued at N2.8 billion in 18,365 deals.
The Banking sub-sector dominated the other sub-sectors, accounting for 45.03 per cent of the market turnover, with 183.66 million shares valued at N1.2 billion in 2,900 deals.