Oando, VFD Group, Dangote Sugar, others dip NGX-ASI by 0.12%

Despite its positive start to the new week, Nigeria’s equities market routed south on Tuesday as investors sold shares of Oando, VFD Group, Dangote Sugar Refinery and other major decliners.

VFD Group decreased the most, from N45 to N40.50, losing N4.50 or 10 percent. Royal Exchange moved down from 62kobo to 56kobo, down by 6kobo or 9.68 percent.

Oando decreased from N68.50 to N62.05, losing N6.45 or 9.42percent. Thomas Wyatt dipped from N1.92 to N1.75, losing 17kobo or 8.85percent, while Dangote Sugar Refinery dropped from N30 to N28.55, down by N1.45 or 4.83 percent.

At the close of trading on Tuesday, the Nigerian Exchange Limited (NGX) All-Share Index (ASI) and equities market capitalisation decreased from preceding day’s 97,374.25 points and N59.003trillion to 97,260.39 points and N58.935trillion. The stock market’s return year-to-date (YtD) decreased to +30.07percent.

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In their November 12 note, Coronation research analysts said, “Last week the Model Equity Portfolio lost 0.62 percent compared with a loss of 0.20 percent in the NGX All-Share Index, underperforming it by 42 basis points (bps). Year-to-date it has returned 45.52 percent compared with a return for the NGX All-Share Index of 30.04percent, outperforming it by 1,548bp”.

“Our losses were concentrated in our neutral notional position in MTN Nigeria which fell 3.4 percent over the week and cost us 22bps. Airtel Africa and BUA Cement also gave up 2 percent each, costing us 41bps and 12bps respectively.

“We did not participate in the rally in Aradel as we have decided not to take a notional position in it at this time.

“This week we will make small notional trades in the largest six stocks by index weight to ensure that we match their index weights. We plan no further changes this week,” Coronation research analysts further said.

Stocks like United Capital, Access Holdings, UBA, Oando and GTCO were actively traded on Tuesday as investors in 10,224 deals exchanged 350,379,154 shares worth N9.262billion.