Market Capitalisation Loses N121 Billion on Renewed Sell-Offs

December 6, 2018

By Yakubu LAAH InvestAdvocate

Lagos (INVESTADVOCATE)-The Nigerian equities market closed the fourth trading session of the week negative on renewed profit taking activity, losing 1.07 percent to 30,819.10 basis points compared to +0.47 percent gain recorded previously, bringing Year-to-Date (YTD) returns to a negative -19.41 percent.

InvestmentOne reports that market breadth index was negative with 17 gainers compared to 22 stocks that declined.

The update says brewer, Champion Breweries Plc with a gain of +9.66 percent emerged the topmost gainer, while insurer, Niger Insurance Plc with a loss of -9.09 percent led the losers’ chart.

According to InvestmentOne, FBN Holdings Plc with a loss of -0.65 percent was the most actively traded with 92 million units of shares worth about N707 million.

In terms of sector performance, the Nigerian Stock Exchange (NSE) Industrial index declined by 1.61 percent, driven by the losses in the shares of cement producer and Nigeria’s most capitalised listed company, Dangote Cement Plc which depreciated by -2.63 percent.

The NSE Banking index shed 0.81 percent, on the back of the sell-offs in the shares of Wema Bank Plc and Access Bank Plc; both dropped -3.64 percent and -2.67 percent apiece, while Zenith Bank Plc and Guaranty Trust Bank Plc lost  -1.47 percent and -0.85 percent each, FBN Holdings declined by -0.65 percent.

In the same vein, the NSE Consumer Goods index lost 0.27 percent, following the declines in the shares of manufacturer of foam furniture and furnishings, Vitafoam Nigeria Plc  and soap and detergent maker, Unilever Nigeria Plc; both plunged -4.47 percent and -1.52 percent respectively, brewer, Guinness Nigeria Plc and food and beverage maker, Nestle Nigeria Plc lost -1.35 percent and -0.34 percent each.

On the positive side, is the NSE Oil & Gas index  which advanced by 0.52 percent due to the gains recorded in the shares of oil marketing major, Oando Plc which appreciated by +4.04 percent.  

“The equities market closed down today due to the losses across most sectors. Despite the sell-off in the equities market in the previous quarter, we believe this presents decent entry opportunities in our quality names,” the InvestmentOne update affirmed.

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