July 18, 2018
Lagos (INVESTADVOCATE)-The bears on Tuesday continued to dominate the equities market at the close of trading on the Nigerian Stock Exchange (NSE), as the all-share index (ASI) dipped 0.58 percent to 36,748.18 points, amidst continued sell pressure in value stocks.
Cordros report says the Banking index posted the largest loss, dropping 2.00 percent following significant sell pressure in the shares of FBN Holdings Plc and Guaranty Trust bank Plc both down by -9.76 percent and -6.76 percent each, while mid tier lender Wema Bank Plc declined -8.82 percent; despite a positive performance in its half year (H1) 2018 results released on Tuesday, which showed a 28.69 percent year-on-year increase in profit after tax.
According to the report, the Oil & Gas index dipped -1.20 percent and Industrial Goods depreciated by -0.52 percent to record negative returns, owing to persisting losses in the shares of oil marketing major, Oando Plc and cement manufacturer, Lafarge Cement Wapco Nigeria Plc; both down -9.52 percent and -1.45 percent apiece.
On the flip side, gains resurfaced in the Insurance and Consumer Goods indices both up +1.32 percent and +1.06 percent each, following investors’ interest in the shares of insurer, Continental Insurance Plc and PZ Cussons Nigeria Plc both gained +10.00 percent and +9.74 percent respectively.
Cordros reports that market breadth remained negative, albeit with an improved margin, with 23 losers and 19 gainers, led by FBNH with a loss of -9.76 percent and CONTINSURE with a gain of +10.00 percent respectively.
Total volume and value of trades declined by 11.05 percent and 31.29 percent to 181.28 million units and N1.64 billion, respectively, exchanged in 3,854 deals.
“In the short to medium term, losses are likely to persist, amidst continued risk-off sentiments in emerging markets and the absence of a near-term one-off positive catalyst. However, still-positive macroeconomic fundamentals remain supportive of gains in the long term,” the Cordros update affirmed.