A depreciation in the share prices of Seplat Petroleum Development Company Plc, Guaranty Trust Bank Plc, Lafarge Africa Plc, United Bank for Africa Plc and Zenith Bank Plc led to a bearish close for the equities market for the second day.
The Nigerian Stock Exchange (NSE) All-Share Index (ASI) fell 0.46 per cent to close lower at 36,333.80 , compared with the marginal depreciation of 0.06 per cent the previous day. The decline has pulled the year-to-date (YtD) decline to a new low of 4.99 per cent. Although there are 23 price gainers, compared with 21 losers, losses by highly capitalised tickers made the market to close lower.
However, the volume and value of trades advanced by 36.07 per cent and 10.43 per cent respectively.
According to analysts at Meristem Securities Limited, “the mood in the market was largely downbeat, despite marginal gains on tickers in the consumer goods sectors. Selling pressure on many counters across the sectors, particularly the heavily weighted stocks in the banking sector dragged the day’s market return.”
Also speaking, analysts at Cordros Capital said: ”Our outlook for equities in the short to medium term remain conservative, amidst brewing political concerns, and the absence of a one-off positive trigger. However, stable macroeconomic fundamentals remain supportive of recovery in the long term.”