Stock market loses N109bn as Total, MTNN, Flour Mills, others top laggards list

Nigerian stock market lost additional N109billion on Wednesday August 14, 2019 being the first trading day into this week shortened by public holiday for Eid-el-Kabir celebrations.​

The stock market dipped by 0.82percent justifying market watchers expectation that the record bearish trading pattern will persist, as the general sentiment around the market remains weak.

The market remains pressured as the bellwether stocks continue to drop to new lows. The year-to-date negative return increased to -13.83percent.

The share price of Total Nigeria Plc recorded the highest loss, after moving down from N114.8 to N105.8, losing N9 or 7.84percent. MTN N followed after its share price dipped from N131 to N129.25, losing N1.75 or 1.34percent, while Flour Mills Nigeria Plc was also down, from N15.3 to N14, losing N1.3 or 8.50percent.

Other stocks that contributed to the market’s new lows include Cement Company of Northern Nigeria Plc which moved down from N14 to N13.25, losing 75kobo or 5.36percent while GTBank Plc declined from N26.5 to N25.95, losing 55kobo or 2.08percent.

“This week, we expect dampened sentiments to remain in the absence of any positive catalysts. Also, financial results from major banks are still outstanding, as market participants are waiting to see the impact of the relatively lower yield environment on Gross Income,” said Lagos-based analysts at United Capital Plc.

In their August 14 note, the analysts asked investors to buy stocks like Unilever Nigeria Plc, Dangote Cement Plc, GTBank Plc, Nestle Nigeria Plc, and Zenith Bank Plc. These stocks and few others offer significant upside potentials for medium to long term investors.

The Nigerian Stock Exchange All Share Index (ASI) and Market Capitalisation stood lower at 27,083.11 points and N13.198trillion respectively as against a preceding trading day’s low of 27,306.81 points and N13.307 trillion.

“Negative sentiment from last week filtered into the new week as investors continue to sell down bellwethers. In the absence of positive catalysts, we expect the equities market to remain relatively pressured,” Vetiva Securities said in their August 14 note.

On the gainers table, Custodian Investment Plc occupied topmost position after its share price moved up from N6 to N6.2, adding 20kobo or 3.33percent. Continental Reinsurance Plc stock price also moved up from N1.39 to N1.45, adding 6kobo or 4.32percent; while Africa Prudential Plc moved up from N3.55 to N3.6, adding 5kobo or 1.41percent.

In 3,922 deals, stock traders exchanged 235,117,057 units valued at N3.291billion. GTBank Plc, Zenith Bank Plc, Access Bank Plc, FBN Holdings Plc and Fidelity Bank Plc were actively traded stocks on the Nigerian Bourse on August 14, 2019.