All-Share Index Sheds 0.6% as Bears Regain Control of Equities Market


Goddy Egene

The equities market opened for the week on a negative note yesterday after recording a major recovery last week. The market had gained 2.04 per cent last week, the highest weekly gain since August 23, 2019.

However, contrary to expectations that the growth, which was propelled by a shift to the equities market after the Central Bank of Nigeria (CBN) barred local investors from participating in its Treasury bill auctions, would be sustained, the market declined yesterday.

Specifically, the Nigerian Stock Exchange (NSE) All-Share Index (ASI) fell 0.60 per cent to close lower at 26,375.35, while market capitalisation shed N189.1 billion to be at N12.88 trillion.

Activity level was also negative as volume traded declined 33 per cent to 308 million shares while value traded dropped 54 per cent to N2.53 billion. The most active stocks by volume were UAC of Nigeria Plc (102.54 million shares), Zenith Bank Plc (29.44 million shares) and UBA (20.80 million shares) while UACN (N636.15 million), Zenith Bank Plc (N555.83 million) and Dangote Cement Plc (N237.98 million) led by value.

Wema Bank Plc led the price losers for the day, shedding 7.8 per cent, trailed by FCMB Group Plc with 7.5 per cent. Caverton Offshore Services Group Plc depreciated by 7.4 per cent, while Access Bank Plc and Ecobank Transnational Incorporated went down by 6.6 per cent apiece. Okomu Oil Palm Plc and Transcorp Plc lost 5.5 per cent each.

On the other hand, Neimeth International Pharmaceuticals Plc led the price gainers with 10 per cent, trailed by Jaiz Bank Plc with 9.8 per cent. The non-interest bank posted a highly improved results of the nine months ended September 30, 2019. The financial institution grew its total income by 49.2 per cent from N5.14billion in the corresponding period of 2018 to N7.7billion while earning per share improved by 670.9 per cent, from N0.55 to N4.24.

Profit before tax increased by 509 per cent from N241.3 million to N1.47billion, while net profit jumped by 672 per cent from N161.7 million to N1.25 billion.

Managing Director of Jaiz Bank Plc,Mr. Hassan Usman had said the results further demonstrated that the bank has the capacity to grow sustainably in line with its strategic vision of becoming the leading non-interest bank in sub-Saharan Africa by 2022.

He assured stakeholders that while maintaining steady focus on elements that contributed to improved performance thus far and barring unforeseen circumstances, this trend would be improved upon in the remaining period of the financial year.