Market Records 9.6% Year-to-date Decline on Negative Sentiments

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Goddy Egene

The year-to-date (YTD) decline of the Nigerian stock market worsened to 9.5 per cent yesterday following continued negative sentiments at the market. Sell-off in bellwethers further depressed the Nigerian Stock Exchange (NSE) All-Share Index (ASI) by 0.48 per cent to close at 28,286.08, while market capitalisation shed N51.3 billion to close at N10.6 trillion yesterday.

Market analysts said the depreciation in Dangote Cement Plc, Union Bank of Nigeria Plc and United Bank for Africa Plc largely contributed to the negative trend recorded yesterday.

Also , the activity level was lower as volume and value traded fell 11.7 per cent and 22.8 per cent to 176.7 million shares and N2.1 billion respectively. The top traded stocks by volume were Access Bank Plc (35.8 million shares), UAC of Nigeria Plc (21.5 million shares) and UBA (18.8 million shares) while the top traded stocks by value were GTBank (N551.1 million), Nestle Nigeria Plc (N360.1 million and ZENITH Bank Plc (N255.6 million).

The sectoral performance was equally bearish as all indices tracked trended southwards. The NSE Industrial Goods Index led decliners shedding 2.3 per cent following sell pressures in Dangote Cement Plc and Cement Company of Northern Nigeria Plc. The NSE Insurance Index NSE Oil & Gas Index with 1.0 per cent decline apiece. Similarly, the NSE Banking Index closed 0.7 per cent lower, just as the NSE Consumer Goods Index shed 0.1 per cent.

A total of 17 stocks depreciated as against 11 that appreciated. WAPIC Insurance Plc led the price losers with 10 per cent trailed by Forte Oil Plc with 9.8 per cent. Champion Breweries Plc shed 9.7 per cent, while Cement Company of Northern Nigeria Plc depreciated by 9.1 per cent.

Some investors in CCNN are taking profit after the stock witnessed significant patronage following its impressive first quarter (Q1) results. The company posted a jump of 213 per cent in revenue from N5.394 billion in the corresponding period of 2018 to N16.886 billion in 2019, while profit . This was the highest in the history of the company and it reflected the impact of the increased combined capacity and the gradual realisation of the synergies following the successful completion of the merger with Kalambaina Cement Company Limited.

Meanwhile, Chams Plc led the price gainers with 9.0 per cent trailed by ABC Transport with 8.0 per cent, while Thomas Wyatt Nigeria Plc appreciated by 7.4 per cent. Veritas Kapital Insurance Plc and Mutual Benefits Assurance Plc chalked up 5. 0 per cent and 4.7 per cent respectively.