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Stock market: Bearish run intensifies as investors lose N114bn

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By Peter Egwuatu

Stock exchange
Nigerian Stock Exchange

The bearish run on Nigerian Stock Exchange (NSE) intensified yesterday as  the  coronavirus (COVID-19) pandemic  continued to ravage the economy and market performance culminating in  investors  losing N114 billion of their investment.

Investors had lost N16 billion on Tuesday as  the stock market All Share Index  (ASI) fell    by 0.14 percent or 14 bases points to close at 21,300.47 points.

Consequently, the stock market yesterday declined by 0.94 percent as the ASI closed at 21,100.54 points    following    sell-offs in Dangote Cement    (-9.9 percent), Zenith    Bank (-2.6 percent) and Flour Mill (-9.9 percent).

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Consequently, Year to Date, YtD return settled at -21.4 percent while market capitalisation decreased N104.2 billion to close at N10.9 trillion.

Analysis of trading yesterday showed that activity level was mixed as volume traded fell 63.4 percent to 154.4 million units while value traded rose 2.5 percent  to N1.8 billion.

The most active stocks by volume were Zenith Bank (38.7million units), Guaranty Trust Bank (22.3 million units) and FBN Holding, FBNH (14.9 million units). Leading the value chart were Zenith (N443.5million), Guaranty Trust Bank  (N391.1million) and MTN Nigeria (N75.7million).

Sector  performance was mixed, albeit negatively skewed as three of six indices under coverage lost while the Oil & Gas index closed flat. The AFR-ICT and Insurance indices gained 4.7 percent and 0.1 percent respectively as a result of buying interest in  MTN Nigeria  (9.3 percent) and  WAPIC  (4.0 percent).

Conversely, the  Industrial Goods index led laggards, down by   2.6 percent on the back of sell-offs  in  Dangote Cement  (-9.9 percent). Similarly, the Banking and Consumer Goods indices trailed, depreciating by    2.0 percent and 1.2 percent    respectively due to losses in  Zenith  (-2.6 percent ),  Ecobank Transnational International ,  ETI  (-9.0 percent ),  Flour Mill  (-9.9 percent ) and  Nigerian Breweries  (-3.3 percent).

Meanwhile, investor sentiment weakened   as measured by market breadth as six stocks advanced  relative to 23 decliners. The best performers were  MTN  Nigeria  (9.3 percent),  International Breweries  (9.2 percent) and  Livestock Feeds  (8.5 percent) while  Unilever  Nigeria  (-10 percent),  Dangote Cement  (-9.9 percent) and  Guinness  Nigeria  (-9.9 percent) led the laggards.

Reacting, analysts at Afrinvest Research said: “We expect the bearish sentiment to continue however, opportunities for bargain hunting exists in the equities market.”

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