By Peter Egwuatu
The effect of coronavirus, COVID-19 on Tuesday continued to ravage the stock market as its nosedived by 0.14 percent or 14 bases points, bps with investors losing N16 billion of their investment.
At the close of trade, price declines in Zenith Bank (-2.1 percent ), Guaranty Trust Bank, GTBank (1.1 percent) and Access Bank (-1.7 percent ) dragged the Nigerian Stock Exchange, NSE All-Share Index down, 14bps to 21,300.47 points.
Consequently, Year to Date, YtD return settled at -20.6 percent while market capitalisation decreased N15.8 billion to close at N11.1trillion. Activity level declined as volume and value traded fell 9.6 percent and 10.8 percent to 422.0 million units and N1.7billion respectively.
The most active stocks by volume were Sterling Bank (303.6 million units), Zenith (29.7million units) and GTBank (16.9milion units) while Zenith (N350.4million), Sterling Bank (N348.7million) and GTBank (N301.2million) led the value chart.
Sector performance was mixed as two indices gained, two lost while two closed flat. The Insurance and Consumer Goods indices posted gains, up 1.6 percent and 0.5 percent respectively due to price appreciation in NEM Insurance (9.5 percent), Cornerstone (3.5 percent), Unilever (4.8 percent) and Flour Mill (2.2 percent).
Conversely, the Banking and Industrial Goods indices depreciated 1.1 percent and 0.1 percent respectively following losses in Zenith (-2.1percent ), GTBank (-1.1 percent) and WAPCO (-1.1 percent). Finally, the Oil & Gas and AFR-ICT indices closed flat.
Meanwhile, investors’ sentiment showed that nine stocks advanced relative to 11 decliners. The best performers were Glaxo Smithkline (10.0 percent), May & Baker (9.7 percent) and NEM Insurance (9.5 percent) while JAIZ BANK (-9.4 percent), Ikeja Hotel (-9.1 percent) and Courtville (-4.8 percent) led the laggards.
Reacting analysts at Afrinvest Research stated “ We expect the bearish sentiment to continue however, there exist bargain hunting opportunities in the equities market.”