Trading at the stock market resumed for the week, sustaining the negative trend. The Nigerian Stock Exchange (NSE) All-Share Index fell by 0.70 per cent to close at 25,986.81, while market capitalisation dipped below N9 trillion to N8.945 trillion. Year-to-date, the market has declined by 9.2 per cent on the continuing bearish trend in the past weeks.
The market had dipped by 3.0 per cent last week due to depreciation recorded in the shares of high-capped stocks across consumer goods, cement and banking sectors was responsible for the huge loss.
“Continued downward valuation revisions following the announcement of the widely unimpressive July-September corporate earnings — and exacerbated by the weak prospect of a recovery in the near term — may have contributed to the selloffs in the latter sectors,” analysts at Cordros Capital had said.
Apart from the NSE ASI that fell, trading activities declined by 92 per cent and 57.6 in value and volume terms respectively. The total value of stocks traded was N1.12 billion, down by 57.64 per cent from N2.63 billion recorded the previous trading day. Twenty-two stocks declined in value yesterday led by Forte Oil Plc. The oil stocks fell by 9.7 per cent to close at N10.18 per share. Honeywell Flour Mills Plc trailed with a depreciation of 5.0 per cent to be at 1.14 per share. Cadbury Nigeria Plc and NASCON Allied Industries Plc went down by 4.9 per cent in that order.
Oando Plc shed 4.8 per cent, just as CAP Plc and Champion Breweries Plc fell by 4.6 per cent apiece. Vitafoam Nigeria Plc and PZ Cussons Nigeria Plc lost 4.4 per cent and 4.3 per cent respectively.
On the other hand, May & Baker Nigeria Plc led the price gainers with 4.7 per cent to close N0.89 per share. WAPIC Insurance Plc appreciated by 4.0 per cent, just as Livestock Feeds Plc and Mansard Insurance Plc gained 2.5 per cent and 1.6 per cent respectively.
Market analysts at Meristem Securities Limited, said: “We attribute the day’s negative outing to continued investors’ apprehension towards the equities market, given the weak economic fundamentals. We expect the mix of profit taking and bargain hunting activities to determine the direction of market sentiments going forward.”