Stocks Close Red -1.63% Week-on-Week, Driven by Selloffs

Oscar Onyema, Chief Executive Officer, the Nigerian Stock Exchange (NSE).

August 31, 2018

By Yakubu LAAH InvestAdvocate

Lagos (INVESTADVOCATE)-The Nigerian equities market  on Friday closed the last trading session of the week in red, as all-share index (ASI) shed 0.68 percent, plunging the week-to-date (WTD) performance by 1.63 percent.

InvestmentOne report says market breadth index was negative with 18 gainers compared to 22 stocks that declined.

According to the report, insurer, Lasaco Assurance Plc with a gain of +10.00 percent was the top gainer of the session; while Jaiz Bank Plc with a loss of -9.09 percent led the losers’ chart.

Mid-tier lender, Diamond Bank Plc with a loss of -2.38 percent was the most actively traded with 102 million units of shares worth about N124 million.

In terms of sector performance, InvestmentOne reports that the Nigerian Stock Exchange (NSE) Banking index declined by 2.48 percent, largely driven by the sell-offs in the shares of lenders, Guaranty Trust Bank Plc and Skye Bank Plc; both declined -5.26 percent and -3.77 percent apiece. Zenith International Bank Plc and Diamond Bank Plc dropped -3.00 percent and -2.38 percent each; while Africa’s global bank, the United Bank for Africa Plc depreciated by -1.23 percent.

Also, the NSE Consumer Goods index closed down by 0.36 percent, on account of the losses in the shares of Honeywell Flour Mills Plc and beer producer, Nigerian Breweries Plc; both plunged -8.02 percent and -2.10 percent respectively, Nascon Allied Industries Plc declined by -0.25 percent.

In the same vein, the NSE Industrial index shed 0.22 percent, due to the loss in the shares of cement manufacturer, Lafarge Cement Wapco Nigeria Plc which dropped by -0.84 percent.

On the positive side, the NSE Oil & Gas index closed up 0.10 percent, following the buy interest in the shares of Eterna Plc and Oando Plc; both appreciated by +8.06 percent and +0.95 percent each. 

Soap and detergent maker, PZ Cussons Nigeria Plc released its year end 2018 results on Friday which showed a 51.98 percent year-on-year (y/y) decline in profit before tax (PBT) to N2.31 billion. Similarly, the company’s profit after tax (PAT) declined by 47.72 percent  to N1.93 billion in financial year 2018.

“The equities market closed down today following the sell-off across most sectors. Despite the sell-off in the equities market in recent times, we believe this presents decent entry opportunities in our quality names,” the InvestmentOne report affirmed.

 

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