All-Share Index Falls Further as Markets Begins New Month Negatively

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MARKET REPORT

Goddy Egene

The stock market opened the month of September on negative note on Monday. As a result, the Nigerian Stock Exchange (NSE) All-Share Index shed 0.03 per cent to close at 34,837.50. Although it decline was lower than the 0.68 per cent recorded on the last day of August, analysts said the market remained under the strong control of the bears. The market had declined by 5.86 per cent in August reflecting prevailing negative investors’ sentiments. About 1.63 per cent of the decline in the month recorded last week.

Although trading has been bearish over the months due continued sell down by foreign and domestic investors, analysts said the lower-than-expected gross domestic product (GDP) growth released last week sent negative signals to the market.

“News of the apex Central Bank of Nigeria (CBN)’s fine on Stanbic IBTC Bank and Diamond Bank Plc for illegally repatriating funds on behalf of telecommunications company MTN Nigeria also contributed to the market’s negative sentiments,” some analysts had said.

It is expected that some level of bargain hunting will be seen this week, following the low prices of many stocks. However, that is yet to materialise as stocks continue to plummet.

Some other analysts had guided investors to trade cautiously in the short-to-medium term, saying the absence of a positive one-off catalyst and brewing political concerns, continue to cast a shadow on our outlook for risky assets. “However, the likelihood of recovery in the long term remains supported by stable macroeconomic fundamentals,” they said.

A total of 19 stocks depreciated yesterday while 18 appreciated. Jaiz Bank Plc led the price losers with 10 per cent, trailed by Flour Mills of Nigeria Plc with 9.6 per cent, while Transcorp Plc went down by 7.9 per cent. Prestige Assurance Plc, Veritas Kapital Insurance Plc and Mutual Benefits Assurance Plc dipped by 7.6, 6.9 per cent and 6.6 per cent in that order.

On the positive side, Consolidated Hallmark Insurance Plc led the price gainers with 10 per cent, trailed by AIICO Insurance Plc with 9.7 per cent, just as Continental Reinsurance Plc garnered 9.4 per cent.

NPF Microfinance Bank Plc, WAPIC Insurance Plc and Union Diagnostic and Clinical Services Plc appreciated by8.9 per cent, 8.3 per cent and 7.6 per cent respectively.

Meanwhile, activity level waned as volume and value traded fell 65.8 per cent and 68.0 per cent to 131.5 million shares and N3.1 billion respectively. The top traded stocks by volume were Nigerian Breweries Plc (19.1 million), Stanbic IBTC Bank Plc (11.8 million shares) and AIICO Insurance Plc (11.2 million) while Nigerian Breweries Plc (N1.8 billion), Stanbic IBTC Bank (N0.6 billion) and Zenith Bank Plc (N0.1 billion) were the top traded stocks by value.