Stocks Shed N110bn as Investors Await Buhari’s Team

By Dipo Olowookere

The stock market commenced trading for the new week on a negative note on Monday with a 0.79 percent loss as the wait for news of the release of ministerial list to the Senate for confirmation continues.

During his term in office in 2015, President Muhammadu Buhari waited for nearly six months to announce his cabinet members and this had a negative effect on the economy, which eventually slipped into recession some months later.

On May 29, 2019, Mr Buhari was sworn into office for a second term, having emerged winner of the keenly contested presidential election held in February.

Nearly two months after he officially commenced the second part of his 8-year rule as President of Nigeria and barely five months after he won the election, Mr Buhari is yet to announce those who will help him achieve his ‘next level’ campaign slogan. Last week, he was reported to have asked the Senate for more time to choose those he personally knows well into his cabinet.

As investors await his team, the stock market continues to bleed further as evident in the year-to-date loss yesterday, which extended to 9.83 percent.

Business Post reports that the All-Share Index (ASI) depreciated by 228.76 points to finish at 28,341.03 points, while the market capitalisation reduced by N110 billion to close at N13.812 trillion.

The negative sentiment on Monday was hugely impacted by the performance of 21 counters which declined during the day as against the 10 price gainers recorded at the session.

Total Nigeria topped the losers’ chart yesterday with a price depreciation of N10 to settle at N130 per unit. Dangote Cement, which followed, went down by N3 to finish at N170 per share.

GTBank lost 90 kobo to end at N29 per share, MTN Nigeria fell by 65 kobo to close at N129 per share, while Eterna declined by 25 kobo to settle at N3.40k per unit.

At the other end, Nestle Nigeria emerged the best performing stock at the market on Monday, appreciating by N33 to finish at N1228 per unit.

Nigerian Breweries gained 50 kobo to close at N58.50k per share, while Conoil increased its share value by 40 kobo to settle at N20.40k per share.

In addition, Vitafoam garnered 16 kobo to finish at N3.70k per unit, while Dangote Flour went up by 10 kobo to close at N17.50k per share.

At the market yesterday, investors transacted a total of 175.2 million shares worth N2.2 billion executed in 3,111 deals, with Waic Insurance emerging as the most traded with a total of 42 million units sold for N16.8 million.

UBA traded 24.2 million shares worth N142 million, GTBank sold 16 million equities valued at N478.8 million, LASACO Assurance exchanged 15.1 million shares for N4.7 million, while Transcorp transacted 14.6 million equities worth N15 million.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via dipo.olowookere@businesspost.ng

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