Local Stocks Decline 0.50% on Losses in Banking, Oil & Gas Names

Left to Right: Head Legal Department Securities and Exchange Commission, SEC, Mrs Anastasia Braimoh, Acting Registrar General, Corporate Affairs Commission, CAC, Lady Azuka Obiageli Azinge, Acting Director General SEC, Ms. Mary Uduk and Acting Executive Commissioner Legal and Enforcement, SEC, Mr. Reginald Karawusa at the Q1 Capital Market Committee, CMC Meeting in Lagos, Thursday

March 21, 2019

By Paschal Ijeh InvestAdvocate

Lagos (INVESTADVOCATE)-The Nigerian equities market closed the fourth trading session of the week in red, dropping -0.50 percent on losses recorded in the Banking, Oil & Gas sectors to 30,885.31basis points compared to -0.13 percent loss recorded previously as Year-to-Date (YTD) returns currently stands at a negative -1.73 percent.

InvestmentOne reports that market breadth index was positive with 24 gainers compared to 15 losers.

According to the report, brewer, Champion Breweries Plc with a loss of -9.68 percent emerged the topmost loser, while insurer, Sovereign Trust Insurance Plc with a gain of  +10.00 percent led the gainers’ chart.

Top tier lender, Access Bank Plc with a gain of +6.15 percent was the most actively traded stock with about 93 million units of shares worth N638 million.

In terms of sector performance, InvestmentOne reports the Nigerian Stock Exchange (NSE) Oil & Gas index shed 3.28 percent, due to the sell-off in the shares of first dual listed Nigerian oil and gas upstream firm, Seplat Petroleum Development Company Plc which depreciated by -5.43 percent.

In the same vein, the NSE Banking index declined by 0.35 percent, largely on the back of the losses in the shares of First City Monument Bank and Guaranty Trust Bank Plc; both declined -2.04 percent and -1.77 percent each, Stanbic IBTC and Zenith Bank Plc dipped -1.10 percent and -0.90 percent apiece, while Fidelity Bank Plc lost by  -0.41 percent.

 On the positive side, the NSE Industrial index closed up by 1.18 percent, following the advancement in the shares of cement manufacturer, Cement Company of Northern Nigeria Plc which gained by +5.26 percent.

Also, the NSE Consumer Goods index gained 0.29 percent, supported by the buy interest in the shares of soap and detergent producer, PZ Cussons Nigeria Plc and salt refining company, NASCON Allied Industries Plc; both appreciated +7.14 percent and +0.97 percent respectively, while Dangote Sugar Refinery Plc inched up +0.72 percent.

“The equities market closed down today following the losses in the Oil & Gas and Banking 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 report added.

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