Fresh Political Uncertainty Weakens Nigerian Stock Market by 0.26%

By Modupe Gbadeyanka

The disruption of the nation’s political landscape by the suspension of the Chief Justice of Nigeria (CJN), Justice Walter Onnoghen, by President Muhammadu Buhari last Friday took its toll on the local stock market.

The equities market reacted to the issue with an upturn of the positive momentum witnessed in two weeks.

heavy profit-taking activities were witnessed during the trading session, which negatively impacted on the nation’s bourse.

At the close of transactions yesterday, the Nigerian Stock Exchange (NSE) closed 0.26 percent lower, triggering the year-to-date loss higher to 0.27 percent.

The All-Share Index (ASI) depreciated on Monday by 82.39 points to finish at 31,344.24 points, while the market capitalisation decreased by N31 billion to settle at N11.688 trillion.

Also, the volume and value of shares transacted by investors declined yesterday by 46.62 percent and 41.36 percent respectively. While the volume of equities traded dropped to 222.7 million from 417.2 million, the value decreased to N1.8 billion from N3.1 billion.

At the market on Monday, losses were recorded across all sectors except the Industrial index, which appreciated slightly by 0.01 percent.

The banking sector dropped 0.50 percent, insurance fell by 1.14 percent, consumer goods decreased by 0.17 percent and the oil/gas going down by 0.40 percent.

The worst performing stock on Monday was Berger Paints, which lost 9.68 percent to close at N7.

It was followed by Consolidated Hallmark Insurance, which dropped 8.57 percent to settle at 32 kobo, and Mc Nichols, which fell by 7.69 percent to end at 36 kobo.  

On the flip side, NPF Microfinance Bank was the best performing stock, appreciating by 9.59 percent to finish at N1.60k per unit.

Union Diagnostics and Clinical Services increased its share value by 7.41 percent to settle at 29 kobo per share, while Oando gained 5.15 percent to close at N5.10k per unit. 

Fidelity Bank was the most actively traded stock during yesterday’s session, with a turnover of 23.7 million equities sold for N56.6 million.

It was followed by UBA, which exchanged 21.8 million shares valued at N162 million, and Diamond Bank, which sold 21.2 million shares worth N48.4 million.