Nigerian Stocks Halt Bullish Run on Sell-Offs in Banking Consumer Goods Counters

L – R shows Oscar N. Onyema OON, Chief Executive Officer, The Nigerian Stock Exchange (NSE); Michael Larbie, CEO Rand Merchant Bank Nigeria and Regional Head West Africa during the Closing Gong Ceremony at the Exchange on Wednesday

June 13, 2018

By Yakubu LAAH InvestAdvocate

Lagos (INVESTADVOCATE)-The Nigerian Stock Exchange (NSE) on Wednesday halted its bullish run as the all-share index (ASI) declined 0.35 percent on sell offs in Banking and Consumer Goods counters to close at 39,031.72 basis points.

InvestmentOne reports that at the close of the session’s trading on the domestic bourse, market breadth index was negative with 20 gainers compared to 22 stocks that declined.
According to the report, Japaul Oil and Maritime Services Plc topped the gainers chart with a gain of +5.88 percent, while lender Diamond Bank Plc led the losers chart with a loss of -5.00 percent.
The report says that Pan-African lender, United Bank for Africa Plc which declined by -1.35 percent was the most actively traded with 90 million units of shares worth N998 million.
In terms of sector performance, the NSE Consumer Goods index closed down by 0.60 percent on the back of losses in the shares of Dangote Sugar Refinery Plc and beer producer, Nigerian Breweries Plc; both lost by -2.56 percent and -1.79 percent apiece, also Dangote Flour Mills Plc depreciated by -0.93 percent.
In the same vein, the NSE Banking index shed 0.47 percent following the sell-off in the shares of Diamond Bank which lost -5.00 percent, Unity Bank Plc down -4.35 percent and Skye Bank Plc declined -3.95 percent.
FBN Holdings Plc depreciated -2.62 percent, Zenith Bank Plc and United Bank for Africa both dipped -1.65 percent and -1.35 percent respectively.
On the positive side, the NSE Industrial index gained 0.17 percent due to the buy interest in the shares of cement manufacturer, Cement Company of Northern Nigeria Plc which appreciated by +3.77 percent.
Still on the gaining side, the NSE Oil & Gas index: inched up 0.01 percent on the back of the gains recorded in the shares of Japaul Oil and Maritime Services and Eterna Plc which closed up by +5.88 percent and +0.50 percent each.
“Going forward, we expect the market to remain volatile in the absence of positive news flow. With this said, we highlight that the recent sell-off in the equities market presents an entry opportunity for investors with a medium to longer term horizon,” the InvestmentOne report affirmed.

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