Stocks Tumble N16.1 Billion as Local Bourse Extends Losses
Listed stocks tumble N16.1 billion on Tuesday as the local bourse extends losses for the second day. Some investors offloaded their holdings in big names, the same pattern that has persisted in the second quarter of 2021.
Rally at consumer goods index was offset sell-offs in other segments including the NSE Banking, Oil and Gas, Insurance and others.
Then, the All-Share Index declined by 8 basis points to close at 38,256.76 points following price decline in GUARANTY (-1.2%), GUINNESS (-0.2%), and FBNH (-1.4%).
Consequently, year-to-date loss worsened to -5.0% while market capitalisation declined by ₦16.1 billion to settle at ₦19.904 trillion. Market data indicates that trading activity improved as volume and value traded increased by 77.3% and 41.8% respectively to 250.2 million units and ₦1.6 billion.
The most traded stocks by volume were COURTVILLE (36.9 million units), ZENITH (28.2 million units), and JAIZBANK (25.9 million units) while ZENITH (₦649.4 million), GUARANTY (₦206.0 million), and UACN (₦80.9 million) led by value.
Mixed Sector Performance
Afrinvest said performance across sectors under its coverage recorded a mixed outing as 2 indices lost, 1 gained, while the other 3 closed flat.
The Banking and Insurance indices lost 0.5% and 1.6% respectively, following sell-offs in GUARANTY (-1.2%), FBNH (-1.4%), AIICO (-5.0%), and MANSARD (-4.4%).
Conversely, the Consumer Goods index emerged as the lone gainer, up by 2 basis points due to price uptick in VITAFOAM (+2.8%), UNILEVER (+1.2%), and HONYFLOUR (+2.6%). However, the Oil & Gas, Industrial Goods, and AFRI-ICT indices closed flat.
Investor Sentiment Weakens
Investor sentiment as measured by market breadth (advance/decline ratio), weakened to 0.6x from 1.1x in the last trading session as 11 stocks advanced while 17 declined.
CILEASING (+9.9%), ROYALEX (+8.8%) and CHIPLC (+7.3%) led gainers while LASACO (-7.1%), CHAMPION (-5.7%) and AIICO (-5.0%) led decliners.
“With the CBN’s retention of all monetary policy parameters at the just concluded MPC meeting, we expect to see some bargain hunting on fundamentally viable stocks in the next trading session”, Afrinvest said.
Stocks Tumble N16.1 Billion as Local Bourse Extends Losses
