Stocks Depreciate N17 Billion as Local Bourse Opens Bearish

Stocks Depreciate N17 Billion as Local Bourse Opens Bearish

Stocks listed on the Nigerian Exchange -the local bourse -depreciate by N17 billion as market opens bearish on first trading session in the week after straight days rally witnessed last week.

The local bourse got off on low note following profit takings across major names.  Precisely, the benchmark index dipped by 10 basis points (bps) to 39,801.78 points, the first negative return in three straight sessions.

Thus, the year to date loss widened to 1.16%, while the market capitalisation declined to N20.830 trillion on Tuesday.

Chapel Hill Denham said going forward, the corporate action-induced rally seen last week will likely extend through the rest of the week.

Beyond that, analysts expressed believe that investors will further react positively to the impressive Q1-2021 corporate earnings released last week.

Especially, positive reactions are expected to bear upon the cement universe as analysts guide that Nigeria’s valuation remains attractive relative to peer countries both on forward price earnings and dividend yield perspective.

On today’s price list, LASACO (+9.86% to N1.56), NEIMETH (+9.83% to N1.90%), and INTBREW (+9.62% to N5.70) were today’s top gaining stocks.

On the flip side, LINKASSURE (-10.00% to N0.53), REGALINS (-9.09% to N0.30), and CHIPLC (-7.69% to N0.36) were today’s top losers.

Analysts stated that only the NSE consumer goods (+76bps) index closed positive, which was on the account of investors’ interest in Interbrew (+9.62%) and Unilever (+4.28%) stocks.

For the former, although the company reported another loss after tax in Q1-2021, the loss was 54% lower when compared to the corresponding period of last year, thereby triggering an upward repricing of its share price on expectation better days ahead.

Nonetheless, analysts said this was neutered by the losses across the NSE banking, NSE industrial goods, NSE oil & gas, and NSE Insurance indices, all of which declined by 32bps, 57bps, 13bps, and 127bps, respectively.

Overall, the market’s activity was broadly bullish, with the total volume expanding by 34.27% to 427 million, valued at N4.654 billion.

Today’s most traded stocks by volume were FBNH (79.60 million units), ACCESS (64.85 million units), and ZENITHBANK (58.00 million units).

On the other hand, the top traded stocks by value were ZENITHBANK (N1.282 billion), WAPCO (N0.628 billion), and FBNH (N0.575 billion).

Nigeria’s Local Currency Stabilises on Foreign Currency Inflow

Elsewhere, the Chapel Hill Denham’s Paramount Equity Fund (PEF) and the Women Investment Fund (WIF) declined by 62bps and 5bps, respectively.

Stocks Depreciate N17 Billion as Local Bourse Opens Bearish