• Friday, June 21, 2024
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Penny stocks spur Nigerian Exchange’s negative start to new week

Stocks slump 1.1% as politics takes toll

Though on a slight note, Nigeria’s stock market on Monday March 7 followed its record negatives path as investors continued to book profit on stocks that had gained in past weeks.

Top on the list of laggards are penny stocks like Niger Insurance Plc which dipped most on the Nigerian Exchange Limited (NGX) from 23kobo to 21kobo, losing 2kobo or 8.70percent; followed by AIICO Insurance Plc which decreased from 70kobo to 66kobo, losing 4kobo or 5.71percent; and Linkage Assurance Plc which decreased from 58kobo to 55kobo, shedding 3kobo or 5.17percent.

Likewise, Regency Alliance decreased from 42kobo to 40kobo, down by 2kobo or 4.76percent; while Africa Prudential joined the top laggards after its share price dropped from N6.80 to N6.50, losing 30kobo or 4.41percent.

The stock market’s benchmark performance indicator – Nigerian Exchange Limited (NGX) All-Share Index (ASI) decreased slightly by 0.01percent from week-open high of 47,268.61 points to 47,262.61. Likewise, the value of Nigeria’s listed stocks decreased by N4billion from preceding day’s N25.475trillion to N25.471trillion.

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From the beginning of this month-to-date (MtD), Nigeria’s stock market has decreased 0.28 percent, while the record positive return year-to-date (YtD) decreased to 10.64percent.

“We expect to see investors continue to book profits on positions that have appreciated significantly in the past weeks”, according to Lagos-based United Capital analysts who also said in their March 7 note that the outcome of corporate releases will be a significant determinant of investors’ sentiment.

Jaiz Bank, Access Bank, UBA, Transcorp and GTCO were most traded stocks on the Nigerian Exchange Limited. In 4,792 deals, investors exchanged 291,881,948 units valued at N2.855billion.

Also, Meristem research analysts who in their March 7 note expect the market to close in the negative region this week, also said: “This week we do not rule out investors reaction to earnings releases and announcements of dividends.”

“We also think that investors might react to the NNPC’s announcement on SEPLAT-Mobil, causing some selloffs on the ticker. Barring any corporate announcement or significant reaction to the current earnings releases, we expect negative sentiment to remain predominant in the market,” Meristem research said.