Sell Pressure Drags Nigerian Exchange Lower by N259bn

Equities investors in the Nigerian Exchange (NGX) lost about N259 billion in the first trading session in the new week due to a slowdown in bargain hunting ahead of an expected Santa Claus rally.

Though the buying mood was altered as stocks that gained previously were offloaded, stockbrokers said it is not the beginning of a dirty December per se, but a momentary slip in investors’ buying sentiment ahead of the holiday season.

Today, stock market performance indicators dipped by 0.66%, resulting in a decline in year-to-date return amidst an expectation of higher inflation for year-end.

In its market update, Atlass Portfolios Limited noted that profit-taking in some medium and large-scale stocks such as BUACEMENT, OANDO, DANGSUGAR, and others dragged the market cap downward.

Data obtained from the Nigerian bourse showed that year-to-date return moderated to 38.43%, still far ahead of an annual inflation rate of 27.33%.

Stockbrokers reported that the market index or the Nigerian Exchange All-Share Index decreased by 473.04 basis points to close at 70,946.83.  Nigeria Eurobond Slumps after CBN Resumes OMO Auction

Due to weak sentiment, stock market activities nosedived from the previous week’s close. Total volume and total value traded for today dropped by -0.72% and -30.56% respectively.

Citing data from the local bourse, Atlass Portfolios Limited told investors via email that approximately 358.53 million units valued at ₦7,100.07 million were transacted in 6,433 deals.

UNIVINSURE was the most traded stock in terms of volume, accounting for 16.54% of the total volume of trades.

The insurance company was followed by TRANSCORP (6.80%), GTCO (6.52%), UNITYBNK (5.34%), and UBA (5.30%) to complete the top 5 on the volume chart.

AIRTELAFRI was the most traded stock in value terms, with 46.05% of the total value of trades on the exchange.

THOMASWY topped the advancers’ chart for today with a price appreciation of 10.00 per cent. The top performer was followed by gains in FBNH (9.93%), DAARCOMM (+9.68%), DEAPCAP (+9.68%), NEIMETH (+9.63%), and twenty-eight others.

Twenty-five stocks depreciated, according to market data. BUACEMENT was the top loser, with a price depreciation of -10.00%. Joining the loser chart were: MBENEFIT (-7.14%), SUNUASSUR (-3.97%), AFRIPRUD (-3.82%), OANDO (-2.12%), and ZENITHBANK (-0.43%).

Given the trading pattern, the market breadth closed positive, recording 33 gainers and 25 losers. In addition, the market sector performance was negative.

Today, three of the five major market sectors weakened.  This was led by the Industrial sector which dropped by 4.21%, followed by a 0.28% decline recorded by the Insurance sector while the Oil & Gas sector fell by 0.01%.

The Consumer goods and Banking sectors grew slightly by +0.06% and +0.01% respectively. Overall, the equities market capitalisation lost ₦258.86 billion, representing a decline of -0.66%, to close at ₦38.82 trillion from ₦39.08 trillion last Friday.