By Peter Egwuatu
The equities market sustained Tuesday’s loss as the Nigerian Stock Exchange, NSE All-Share Index declined 0.6 percent or 59 bases points, bps to 29,378.63 points due to profit-taking, assets repricing, and portfolio re-balancing.
The sustained bearish run was an indication that investors are still reacting to the impact of the recent adjustment in the Cash Reserve Ratio, CRR set by the Central Bank of Nigeria, CBN last week at its Monetary Policy Committee, MPC meeting to 27.5 percent from 22.5 percent ahead of the full-year earnings reporting season.
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.
Analysts are of the view that investors and stockbrokers are positioning in anticipation of the 2019 full-year earnings reports, amidst the changing sentiments in the hope of improved liquidity and positive economic indices which had pushed the market out of the bearish zone.
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Specifically Tuesday trading activities show that Guaranty Trust Bank declined by (-3.4 percent), STANBIC IBTC (-2.4 percent) and Zenith Bank (-1.4 percent). Consequently, Year to Date, YtD return further eased to 9.4 percent while market capitalisation fell N89.8 billion to N15.1 trillion.
Activity level was mixed as volume traded declined 43.5 percent to 250.9 million units while value traded rose 44.2 percent to N4.8 billion. The most active stocks by volume were STANBIC IBTC (43.0 million units), Zenith Bank (34.3million units) and UBA (18.6 million units) while STANBIC IBTC (N1.8 billion), Zenith Bank (724.1 million) and Access Bank (N467.9 million) led by value.
Meanwhile, performance across sectors was bearish as four indices lost. The Insurance index (1.5 percent) was the lone gainer, buoyed by buying interest in Linkage Assurance gain of (9.6 percent) and NEM Insurance (9.1 percent).
Conversely, losses in Guaranty Trust Bank (-3.4 percent), Zenith Bank (-1.4 percent) and Total Nigeria (-8.6 percent) weighed on the Banking (-2.2 percent) and Oil & Gas (-1.4 percent) indices.
Equally, the Industrial (-0.6 percent) and Consumer Goods (-0.3 percent) indices declined due to sell pressures in Flour Mills (-5.8 percent), BUA Cement (-0.5 percent) and WAPCO (-2.3 percent). The AFR-ICT indices closed flat
Investor sentiment as measured by market breadth weakened as nine stocks advanced relative to 23 decliners.
The best performers were Julius Berger (9.9 percent), NAHCO (9.7 percent) and Linkage Assurance (9.6 percent) while ABC Transport (-9.8 percent), GLAXO SMITHKLINE (-9.2 percent) and Eterna (-8.8 percent) led the laggards.