Sell-offs in blue chips knock off ₦104.2 billion in stock market

Sell-offs in blue chips knock off ₦104.2 billion in stock market

The Nigerian Stock Exchange closed in red with investors’ fortune washed off in billions as coronavirus cases keeps running riot.

At the close of trade, the All-Share Index shed 94 basis points (bps) to 21,100.54 points following sell-offs in DANGCEM (-9.9%), ZENITH (-2.6%) and FLOURMILL (-9.9%).

So, year to date loss widened before it settled at -21.4%. Then, the market capitalisation decreased ₦104.2 billion to ₦10.996 trillion.

Meanwhile, activity level was mixed as volume traded fell 63.4% to 154.4 million units while value traded rose 2.5% to ₦1.8 billion.

Trading charts shows that the most active stocks by volume were ZENITH which traded 38.7 million units, GUARANTY 22.3 million units and FBNH 14.9 million units.

To lead the value chart, ZENITH stocks traded closed at ₦443.5 million, GUARANTY ₦391.1 million and MTNN ₦175.7 million.

However, sector performance was mixed, albeit negatively skewed as 3 of 6 indices under analysts at Afrinvest coverage lost while the Oil & Gas index closed flat.

The AFR-ICT and Insurance indices gained 4.7% and 0.1% respectively as a result of buying interest in MTNN which gained 9.3% and WAPIC did 4.0%.

Conversely, the Industrial Goods index led laggards, down 2.6% on the back of sell-offs in DANGCEM (-9.9%).

Similarly, the Banking and Consumer Goods indices trailed, depreciating 2.0% and 1.2% respectively.

This was due to losses in ZENITH (-2.6%), ETI (-9.0%), FLOURMILL (-9.9%) and NIGERIAN BREWERIES (-3.3%).

Investor sentiment as measured by market breadth weakened to 0.2x from the 0.7x recorded in the previous trading session as 6 stocks advanced relative to 23 decliners.

The best performers were MTNN which appreciated by +9.3%, INTBREW +9.2% and LIVESTOCK +8.5%.

On the loser’s chart, UNILEVER went down by 10.0%, DANGCEM 9.9% and GUINNESS -9.9% to lead the laggards.

“We expect the bearish sentiment to continue however, opportunities for bargain hunting exists in the equities market”, Afrinvest said.

Sell-offs in blue chips knock off ₦104.2 billion in stock market Naira Steadies as Banks Issue Update on FX Purchase