Nigerian stock woes: N1.3 trillion wiped out in 8 days

Nigerian stock woes: N1.3 trillion wiped out in 8 days

Wednesday, January 13, 2016 8:29 pm

Nigeria’s  equities market sustained its downward trend today on the back of bearish oil price and its resultant effect on the domestic fiscal and monetary terrain. Equities shed 3.6 per cent as oil prices neared $30.4.

This led to a sell pressure across board, more pronounced in the bellwether DANGCEM, GUARANTY, NB, NESTLE, WAPCO and ZENITHBANK.

Consequently, the benchmark index (NGSE INDX) lost 358bps to close at 25,103.1 as the market reached its lowest level in the past in three years.

Similarly, market capitalization was down to N8.6trn after losing N1.32 trillion since the market reopened after the New Year.

The   Value trade also decreased by 32.8% to N1.7 billion while volume traded increased by 65.3% settling at 369.2mn units.

Only three stocks  appreciated in comparison to 34 decliners, as market breadth settled at 0.1x. Ashaka Cement topped the gainers’ chart, appreciating by N2.26 to close at N26.50 per share. Custodian and Allied Insurance followed with a gain of 14k to close at N4.20, while NEM Insurance gained 2k to close at 67k per share.

 Nestle led the laggards’ table, losing N41 to close at N779 per share.
Dangote Cement came second with a loss of N7.65 to close at N145.45, while 7-UP dipped N7 to close at N175 per share. Nigerian Breweries shed N4.84 to close at N97.18, while Lafarge Africa dropped N3.55 to close at N91.31 per share.

Sentiments are expected to remain frail in coming sessions, hinged on bleak earnings expectation, bearish outlook for oil price and apathy towards Naira assets by foreign investors.

All Sectors in the Red: Returns across the major sectors once again followed the bearish traits of the market. The Industrial Goods sector saw the biggest returns at -4.6% on the back of losses in DANGCEM (5.0%) and WAPCO (3.7).  Losses in FBNH, GUARANTY, ACCESS and ZENITHBANK significantly contributed to the Financial Services returning -4.6%.

The Consumer Goods sector saw returns of -3.2% due to losses in 7UP(-3.9%) and NB(-4.8%). Further declines in OANDO drove the Oil and Gas sector return -0.3%.

With Reports  by United Capital Plc

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