Nigerian Stocks Open Week Bearish on Sell-Offs Across Sectors

July 16, 2018

By InvestAdvocate

Lagos (INVESTADVOCATE)-The equities market on Monday started the week on a bearish note as the all-share index (ASI) declined by 0.34 percent to 37,266.86 points, as selloffs ensued across all major sectors. 

Cordros report says following the decline in benchmark index, the Month-to-Date and Year-to-Date losses on the Nigerian bourse rose to 2.64 percent and 2.55 percent respectively. 

The report says at the close of the trading session on the floor of the Nigerian Stock Exchange (NSE), the Oil & Gas index dropped by -1.85 percent to record the largest loss among the major sector indices, owing largely to a selloff of the shares of Oando Plc which depreciated by -9.38 percent shares, following reports of a resolution by the London Court of International Arbitration, which stated that the Oando chief executives (via Ocean and Oil Development Partners, which owns a 55.96 percent stake in Oando Plc, and Whitmore Asset Management Limited) were indebted to Ansbury Investments Inc. to the tune of $680 million.

The Insurance  and Banking indices also dipped by -0.84 percent and -0.67 percent apiece; while the Industrial Goods and Consumer Goods indices declined -0.20 percent and -0.14 percent respectively also posted negative returns, following losses in the shares of Custodian Investment Plc and lender Guaranty Trust Bank Plc both went down by -9.97 percent and -0.75 percent each, while Chemical and Allied Product Plc and PZ Cussons Nigeria Plc plunged -6.76 percent and -10.00 percent each. 

Cordros reports that market breadth remained negative with 32 losers and 8 gainers, led by Multi-Trex Integrated Foods Plc with a loss of -10 percent to emerge the topmost loser; Nigerian Aviation Handling Company Plc with a gain of +9.97 percent  led the losers chart.

The report says total volume of trades rose by 45.09 percent to 303.48 million units, valued at N2.04 billion exchanged in 3,402 deals. 

“In our view, selloffs are likely to persist in the near-to-medium term, in the absence of a near-term one-off positive catalyst. However, still-positive macroeconomic fundamentals remain supportive of gains on the long term,” the Cordros report said.

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