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Nigeria’s stock market fails to sustain gains

On Tuesday September 15, the stock market of Africa’s largest economy was unable to sustain previous day’s gains, no thanks to investors in oil & gas counters.

More investors offered shares of Seplat Petroleum Development Company Plc which affected the pricing. Seplat led the losers table after moving from N390 to N385, down by N5 or 1.28percent.

Red Star Express Plc share price also dipped, from N3.75 to N3.52, losing 23kobo or 6.13percent. Dangote Sugar Refinery Plc decreased from N12.05 to N11.9, losing 15kobo or 1.24percent.

Oando Plc share price was also down from N2.38 to N2.25, losing 13kobo or 5.46percent; while NPF Microfinance Bank Plc dipped from N1.38 to N1.25, down by 13kobo or 9.42percent.

The negative sentiment seen around oil & gas stocks on the Nigerian Bourse –NSE Oil & Gas Index (-1.16percent) – comes despite that crude oil prices rose on Tuesday, but forecasts of a slower than expected recovery in global fuel demand due to the Covid-19 pandemic still weighed.

Read also: Nestlé S.A pays N286.9m for additional 229,697 shares of Nestle Nigeria

Brent crude was up 44 cents, or 1.1percent, at $40.05 a barrel by 1209 GMT, while U.S. West Texas Intermediate (WTI) crude futures were up 52 cents, or 1.4percent, at $37.78 a barrel. Both contracts fell on Monday.

Gains in stocks like Lafarge Africa (+3.45percent), Chemical and Allied Product (+1.19percent), and GTBank (+0.20percent) could not reverse the negative. At the close of trading session, the Nigerian Stock Exchange (NSE) All-Share Index (ASI) decreased by 0.03 percent to 25,597.96 points, from preceding day’s high of 25,605.59 points.

Likewise, the valued of listed stocks (market capitalisation) decreased by N4billion to N13.354trillion as against preceding day high of N13.358trillion.

The stock market’s negative return year-to-date (ytd) increased to -4.63percent. In 3,597 deals, investors exchanged 245,139,497 units valued at N3.013billion. Banking stocks were actively traded, led by FBN Holdings, GTBank, Zenith Bank, Stanbic IBTC and Access Bank.

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