NSE Closes Third Trading Session in Red, as ASI Dips -0.13% on Losses

March 20, 2019

By InvestAdvocate

Lagos (INVESTADVOCATE)-The Nigerian equities market on Wednesday closed the third trading session of the week in red, depreciating 0.13 percent on losses across sectors to 1,040.84basis points compared to 0.14 percent loss recorded previously, as Year-to-Date (YTD) returns decline -1.24 percent.

InvestmentOne update reports that market breadth index was negative with 14 gainers compared 23 losers.

The update says that cablemaker, Cutix Plc with a loss of -9.76 percent was the topmost loser, while insurer, Niger Insurance Plc with a gain of +9.52 percent led the gainers’ chart.

Top tier lender, Access Bank Plc with a gain of +9.24 percent was the most actively traded stock with about 83 million units of shares worth N530 million.

In terms of sector performance, the Nigerian Stock Exchange (NSE), Consumer Goods index shed 0.94 percent, due to the sell-offs in the shares of food and beverage producer, Cadbury Nigeria Plc and PZ Cussons Nigeria Plc with a loss of -8.33 percent and -3.23 percent each,while food and beverage producer Nestle Nigeria Plc and brewer, Nigerian Breweries Plc; both depreciated -1.74 percent and -0.71 percent each.

In the same vein, the NSE Oil & Gas index declined by 0.62 percent, largely on the back of the losses in the shares of oil marketing major, Oando Plc which dipped by -4.27 percent.

Still on the losing streak, the NSE Industrial index closed down by 0.45 percent, following the declines in the shares of Cutix Plc and Nigerian glass maker, Beta Glass Plc; both plunged -9.76 percent and -8.92 percent respectively.

On the positive side, the NSE Banking index gained 0.91 percent, supported by the buy interests in the shares of lenders, Access Bank Plc and Fidelity Bank Plc both appreciated +9.24 percent and +9.05 percent apiece, Wema Bank Plc and First City Monument Bank gained +4.05 percent and +2.08 percent each, while Africa’s global lender, United Bank for Africa Plc gained +1.99 percent.

“The equities market closed down today following the losses across most sectors. Despite the recent sell-off in the equities market, we believe prices at current level presents decent entry opportunities for investors with medium to long term horizon. Furthermore, with the conclusion of the 2019 elections, we expect uncertainties associated with political risk to dwindle. This may improve investor sentiment towards the Nigerian equities market,” the InvestmentOne update said.

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