NSE Index Sheds 0.38% as Market Opens on Bearish Note

The Nigerian Stock Exchange (NSE) All-Share Index shed 0.38 per cent to close lower at 35,306.09 as the trading at the stock market resumed for the week on negative note. The performance indicates persistent negative investors’ sentiments that have enveloped the market for some times now. Having shed 0.14 per cent last week due to losses by bellwether stocks, the bears remained in control when trading resumed yesterday.

A total of 22 stocks depreciated compared with 18 that appreciated. Unity Bank Plc led the price losers with 5.0 per cent, trailed by PZ Cussons Nigeria Plc and United Capital Plc with 4.9 per cent apiece.

PZ Cussons yesterday reported its first quarter results, where it recorded a loss of N123 million, an improvement on the N1.585 billion in the corresponding period of 2016.

Cadbury Nigeria Plc shed 4.8 per cent, just as Sterling Bank Plc, Glaxosmithkline Consumer Nigeria Plc and Jaiz Bank Plc went down by 4.7 per cent, 4.5 per cent and 4.2 per cent in that order.

On the positive side, C & I Leasing Plc recorded the highest price gain of 9.8 per cent, trailed by Learn Africa Plc with 6.7 per cent. Caverton and N.E.M Insurance Plc appreciated by 4.8 per cent and 4.3 per cent respectively. Union Bank of Nigeria Plc and Guinness Nigeria Plc added 3.9 per cent and 3.6 per cent respectively.

While Guinness Nigeria Plc recently closed its rights issue, Union Bank is currently in the market raising about N50 billion from existing shareholders. The bank is offering 12.1 billion ordinary shares of 50 kobo at N4.10. The Group Chief Executive Officer of Union Bank , Emeka Emuwa had said: “With the commencement of the Rights Issue subscription, we have now officially entered a new phase of our transformation where we will be focused on accelerating business growth to deliver on our objective of becoming one of Nigeria’s leading financial institutions.”

According to the Emuwa, the capital raised from the rights issue will support its strategy to accelerate business growth and position Union Bank as a leading commercial bank in Nigeria.

Meanwhile, the NSE Consumer Goods Index fell 0.9 per cent to lead the sectoral decliners due to the fall in the share prices of Nigerian Breweries Plc and PZ. Losses in Forte Oil Plc and Oando Plc dragged the NSE Oil & Gas Index 0.3 per cent.

On the other hand, the NSE Banking Index led gainers with 0.6 per cent. The NSE Industrial Goods Index up by 0.3 per cent.