May 12, 2020

Stock market sustains bearish trend as investors lose N132.9 bn

Stock market

Stock Market

Stock Market

By Peter Egwuatu

The Nigerian stock market on Tuesday sustained the downward trend as investors lost N123.9 billion of their investments following the negative sentiments that characterized the market.

Specifically, at the close of trade, the local bourse sustained Monday’s loss as the All-Share Index (ASI) shed 106 bases points, bps to close at 23,695.90 points following profit-taking in Dangote Cement (-4.3 per cent), BUA Cement (-0.9 per cent) and MTN Nigeria  (-0.4 per cent).

Also read: GTBank Launches Beta Health Expands Access to Health Insurance for Low-Income Nigerians

Consequently, investors lost N132.9 billion as market capitalisation fell to N12.3trillion while Year to Date, YtD loss worsened to -11.7 per cent. Activity level waned as volume and value traded declined 24.0 per cent and 5.6 per cent to 155.6million units and N1.7billion respectively. The most active stocks by volume were First Bank Nigeria Holdings, FBNH (27.8million units), UACN (16.6million units) and Guaranty Trust Bank (15.0million units) while Dangote Cement (N350.3billion), Guaranty Trust Bank (N314.7billion) and MTN Nigeria (N265.5billion) led the value chart.

Meanwhile, performance across sectors was bearish as five of the six indices under coverage trended southward except the Oil & Gas index which closed flat. The Industrial Goods index led laggards, down 1.8 per cent following profit-taking in Dangote Cement  (-4.3 per cent) and BUA Cement (-0.9 per cent). Similarly, the Insurance and Banking indices lost, declining 0.6 per cent and 0.3 per cent respectively due to selling pressures in WAPIC Insurance  (-6.7 per cent), LASACO Insurance  (-7.4 per cent), UBA (-1.6 per cent) and Access Bank (-0.8 per cent).

Losses in MTN Nigeria (-0.4 per cent) and Guinness Nigeria (-1.1 0 per cent) dragged the AFR-ICT and Consumer Goods indices lower by 0.2 per cent and 2 bps respectively.

Investor sentiment as measured by market breadth showed that 14 stocks gained relative to 15 losers. The top gainers were NEIMETH (+10.0 per cent), NPF Microfinance Bank,  (+9.8 per cent) and ETERNA (+9.4 per cent) while CAVERTON (-10.0 per cent), ARBICO (-9.7 per cent) and AFROMEDIA (-8.8 per cent) were top losers.