Nigerian Bourse Dips as Investors Dump Insurance, Banking Stocks
Nigerian bourse dips again Tuesday as investors sell off more insurance and banking stocks, sustaining the previous day’s negative sentiment resulting in a slowdown in market performance indicators.
The decline recorded at the Lagos bourse was driven by the sell-off in the financial stock (NEM, Mansard, Zenith, Access Bank) which led to a 0.1 per cent decline in All-Share Index to close at 38,858.99 points.
Losses in ZENITH BANK (-0.6%) offset gains in GTCO (+0.4%) with the month-to-date and year-to-date returns unchanged at -0.9% and -3.5%, respectively. Overall, equities market capitalisation lost ₦2.78 billion to close at ₦20.246 trillion.
Trading data from the Nigerian Exchange shows that market activity traded bullishly due to a large volume of transactions on HONYFLOUR. Both the total volume and value traded appreciated by 277.41 per cent and 77.78 per cent, respectively.
In today’s trading session, a total of 526.30 million units of shares valued at ₦3.04 billion were traded in 3,535 deals at the local bourse.
HONYFLOUR topped the traded stocks in terms of volume, accounting for 76.42 per cent of the total volume of trades, followed by UBA (2.11%), TRANSCORP (1.80%), FIDELITYBK (1.74%), and WEMABANK (1.66%) to complete the top five on the volume chart.
Again, HONYFLOUR was the most traded stock in value terms with 50.20 per cent of the total value of trades on the exchange.
SKYAVN topped the gainers’ chart with price appreciation of 9.88 percent, followed by FLOURMILL (1.87%), UCAP (1.75%), GTCO (1.47%), FBNH (0.67%), WAPCO (0.44%), FIDELITYBK (0,41%), HONYFLOUR (0.26%), OANDO (0.19%), 5 others.
Conversely, MANSARD led the decliners’ chart as its share price dipped by 9.70 per cent to close at ₦2.70, as AFRIPRUD (-8.59%), NEM (-5.00%), FCMB (-3.33%), ACCESS (-1.09%), ZENITH BANK (-0.64%) and UPDC (-0.53%) amongst others also declined in price.
Data shows that market breadth closed marginally negative, recording 14 gainers and 15 losers.
Afrinvest said performance across the sectors under its coverage was mixed as 3 indices advanced, 2 declined, while the AFR-ICT index remained unchanged. The Consumer Goods index advanced the most, up 10 basis points on the back of sustained price appreciation in HONYFLOUR (+0.3%) and FLOURMILL (+1.9%).
Trailing, the Oil & Gas and Industrial Goods indices rose 4 and 2 basis points respectively due to buying interest in OANDO (+0.2%) and WAPCO (+0.4%). The Insurance and Banking indices closed in the red, down 3.4% and 0.3% respectively as a result of sell-offs in MANSARD (-9.7%), NEM (-5.0%), ZENITH (-0.6%), and ACCESS (-1.1%).
“In the next trading session, we expect the bearish performance to persist on the back of weak investor sentiment”, analysts said.
Nigerian Bourse Dips as Investors Dump Insurance, Banking Stocks
