Investors’ Losses Expand as Nigerian Bourse Opens Negative

Investors’ Losses Expand as Nigerian Bourse Opens Negative

Investors’ losses extend on Monday as the Nigerian bourse opens negative after a bloodbath in the recent past week. Profit-taking activities persist as the market index sees a seesaw movement despite the declining yields in the fixed income space. Last week, the Nigerian Exchange sheds weight as bears knocked off N177 billion from market capitalisation.

Today’’ trading however depicts a continuation of the bearish trend witnessed as year-to-date losses worsened to 3.4% due to selling pressure on ZENITH (-1.3%), WAPCO (-1.8%), and OANDO (-4.1%).

Consequently, the NGX All-Share Index declined 2 basis points to close at 38,915.62 points, just as the month to date loss also worsened to -0.8% while market capitalisation fell ₦3.2 billion to ₦20.3 trillion.

Trading activity improved as volume and value traded rose by 30.1% and 11.4% to 201.1 million units and ₦2.5 billion respectively.

The most traded stocks by volume were UNIVINSURE (19.4 million units), FIDELITY (19.3 million units), and FBNH (16.7 million units) while NESTLE (₦1.2 billion), STANBIC (₦202.1 million), and UNILEVER (₦131.9 million) led by value.

Performance was mixed across sectors under our coverage as 3 indices lost, 2 gained, while the AFR-ICT index closed flat. The Oil & Gas index led the laggards, down 0.7% due to profit-taking in OANDO (-4.1%).

Similarly, the Insurance and Industrial Goods indices dipped 0.1% apiece as a result of losses in WAPIC (-3.9%), MBENEFIT (-3.2%), and WAPCO (-1.8%).

Meanwhile, the Consumer Goods and Banking indices advanced 0.2% and 0.1% respectively on the back of buying interest in HONYFLOUR (+1.3%), INTBREW (+4.2%), ACCESS (+1.1%), and FIDELITY (+4.4%).

Investor sentiment, as measured by market breadth (advance/decline ratio), strengthened to 0.9x from 0.7x as 18 stocks advanced while 19 stocks declined.

MORISON (+9.4%), SOVRENINS (+8.0%), and LINKASSURE (+5.3%) led the gainers while SCOA (-10.0%), ACADEMY (-7.7%), and ABCTRANS (-5.7%) led the losers. “In the next trading session, we expect local bourse to sustain bearish performance in the absence of any positive catalyst”, Afrinvest said.

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Investors’ Losses Expand as Nigerian Bourse Opens Negative