Bears Sustain Hold on Nigeria Bourse, Driven by Selloffs

L – R: Shows Ms. Tinuade Awe, Executive Director, Regulation, NSE presenting a replica of the closing gong to Mrs. Aderonke Adedeji, President, Pension Fund Operators Association of Nigeria and CEO Leadway Pensure during a Closing Gong Ceremony at the Exchange on Tuesday.

July 17, 2018

By InvestAdvocate

Lagos (INVESTADVOCATE)-Bears on Tuesday sustained hold on the Nigerian equities market which closed the second trading session of the week in the red losing 0.81 percent on selloffs across sectors.

InvestmentOne reports that market breadth index was negative with 14 gainers compared to 33 stocks that declined.

According to the report, insurer, Sovereign Insurance Plc with a gain of +8.00 percent emerged the topmost gainer,  while construction giant, Julius Berger Nigeria Plc with a loss of -10.00 percent led the losers chart.

Conglomerate, Transnational Corporation of Nigeria Plc which surged by +0.79 percent was the most actively traded with 20 million units of shares worth about N27million.

In terms of sector performance, the Nigerian Stock Exchange (NSE) Industrial index declined by 2.36 percent following the loss in the shares of cement producer, Lafarge Cement Wapco Nigeria Plc which declined by -8.00 percent.

The NSE Oil & Gas index shed 1.31 percent due to the decline in the shares of Capital oil Plc and Oando Plc both went down -10.00 percent and -9.48 percent respectively, also, Mobil Nigeria Plc dipped by -0.28 percent.

In the same vein, the NSE Consumer Goods index closed down by 1.18 percent largely driven by the losses in the shares of soap and detergent manufacturer,  PZ Cussons Nigeria Plc and beer producer, International Breweries Plc; both lost -9.94 percent and -7.41 percent apiece, while Dangote Flour Mills Plc and brewing giant, Nigerian Breweries Plc both declined -4.12 percent and -1.36 percent each.

Also, the NSE Banking index lost 0.93 percent on the back of the sell-off in the shares of lenders, Fidelity Bank Plc and Access Bank Plc; both dipped -5.31 percent and -1.49 percent apiece. FBN Holdings Plc and Guaranty Trust bank Plc depreciated by -1.44 percent and -1.13 percent respectively; while United Bank for Africa Plc and Zenith Bank Plc lost -1.01 percent and -0.63 percent each.

“Despite the continued sell-off in the equities market, we believe this presents decent entry opportunities in our quality names. Furthermore, we could see investors take position in anticipation of the release of H1 2018 results and possible corporate action,” the InvestmentOne report affirmed.

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