Stocks shed N380bn in three days as market tilts towards sell-side
…presents opportunity for bargain hunting
Nigeria’s listed stocks lost approximately N387billion in three trading days to Wednesday February 5, 2020 as the market activities continue to slant towards the sell-side. All key sectoral indices are in the red this week.
The NSE 30 which tracks the top 30 companies in terms of market capitalisation and liquidity has decreased by 2.74percent in three trading days into this week.
Others are: NSE Banking (-3.5percent), NSE Consumer Goods (-2.25percent), NSE Industrial Goods (-2.93percent), NSE Insurance (-0.17percent), NSE Oil & Gas (-3.12percent), and NSE Pension (-3.41percent).
The Nigerian Stock Exchange (NSE) All Share Index (ASI) has declined by 2.60percent this week to 28,093.76 points as against 28,843.53 points at the beginning of the week. Listed stocks value has decreased from week-open high of N14.857 trillion to N14.470trillion.
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“In the absence of poor showings by any of the market heavyweights, we expect a positive session, as the opportunity for bargain hunting in recently beaten-down stocks is present”, said Lagos-based Vetiva analysts in their Wednesday note.
Only on Wednesday, February 5, 2020, the benchmark index lost 1.19percent, its worst performance this week. 18 stocks advanced in price as against 21 declines. The market’s positive return is year has decreased to 4.66percent.
Zenith Bank Plc, FBN Holdings Plc, FCMB Group Plc, UBA Plc and ETI Plc were actively traded stocks on the Nigerian bourse. In 4,729 deals, equity investors exchanged 350,207,706 units valued at N4.283billion.
Wednesday trading session was characterised by early session decline large cap stocks led by Dangote Cement. Others are Nigerian Breweries, Mobil Oil, Conoil and NASCON.
Mobil led the losers table after its share price dropped from N147.9 to N133.2, shedding N14.7 or 9.94percent. Dangote Cement Plc also decreased from N179.9 to N170, losing N9.9 or 5.50percent, while Nigerian Breweries Plc decreased from N55 to N51.5, losing N3.5 or 6.36percent.
The share price of CAP Plc gained most from N22.6 to N24.6, adding N2 or 8.85percent, followed by Union Bank of Nigeria Plc which increased from N6.6 to N7.25, adding 65kobo or 9.85percent, and Dangote Sugar Refinery which moved up from N12.45 to N12.95, adding 50kobo or 4.02percent.