Stocks Tumble as Nigerian Exchange Extends Bearish Run

Stocks Tumble as Nigerian Exchange Extends Bearish Run

Stocks tumble on Monday as the Nigerian Exchange (NGX) extends a bearish run ahead of inflation data released this week. The local bourse resumed with sell pressure on MTNN (-0.6%), ZENITH (-2.2%), and BUACEMENT (-0.7%) as bears have a day, thus extending the previous week losses.

Stockbrokers said the selling pressure witnessed today dragged the All-Share Index lower by 36 basis points to 37,857.89 points. Consequently, the year to date loss worsened to -6.0% while market capitalisation dipped by ₦70.9 billion to ₦19.7 trillion.

However, the volume of stocks traded on the exchange recorded a decline of 22.31 per cent compared to a 6.47 per cent increase in the value of stocks traded.  A total of 187.24 million units of shares valued at N2.89 billion, were traded in 4,017 deals.

ZENITH BANK led the volume chart, accounting for 18.86 per cent of the total volume of trades, followed by SOVERNINS (7.56%) UBA (7.54%) MBENEFIT (7.23%), and TRANSCORP (6.12%) to complete the top five on the volume chart.

Also, ZENITH BANK led the value chart accounting for 30.14 per cent of the total value of trade on the exchange. TRIPPLEG, REGALINS and UPDC led the gainers’ chart, with their share prices advancing by 9.89 per cent, 8.89 per cent, and 7.44 per cent, respectively.

CWG topped the losers’ table with its share price depreciating by 9.52 per cent to close at N1.14 after opening the day at N1.26.

Bearish Sector Performance

Afrinvest said in its market report that performance across sectors under its coverage was bearish as 5 indices lost while 1 index gained. The Banking index led losers down 1.0% due to price depreciation in ZENITH (-2.2%), and FBNH (-2.6%).

Similarly, the Consumer Goods and AFR-ICT indices dipped by 0.4% apiece due to sell-offs in PZ (-1.7%), HONYFLOUR (-0.6%), and MTNN (-0.6%). In the same vein, the Industrial Goods and Insurance indices fell by 35and 3 basis points respectively due to losses in INTBREW (-5.7%), BUACEMENT (-0.7%) and MANSARD (-2.3%).

Conversely, the Oil & Gas index was the lone gainer, up 5bps on the back of buying interest in ETERNA (+1.7%).

“In the next trading session, we envisaged extension of cautious trading ahead of H1-2021 earnings releases”, Afrinvest said.