Local Stock Exchange Succumbs to Bears After 0.05% Loss

By Dipo Olowookere

The nation’s stock exchange retreated by 0.05 per cent on Wednesday as a result of the decision of investors to sell off some stocks across the key sectors of the market.

This consequently brought down the All-Share Index (ASI) of the Nigerian Exchange (NGX) Limited by 23.25 points to 43,707.30 points from 43,730.55 points and reduced the market capitalisation of the local stock exchange by N13 billion to N22.809 trillion from N22.822 trillion.

Data showed that the banking sector was the most hit as it depreciated by 0.97 per cent, while the insurance index fell by 0.34 per cent, with the industrial goods and energy sectors declining by 0.25 per cent and 0.24 per cent respectively.

Only the consumer goods counter closed bullish during the midweek session as it appreciated by 0.12 per cent, but its growth could not save the market from drowning.

Business Post reports that the market activity was mixed yesterday as the trading volume went down by 3.57 per cent to 270.7 million units from 280.7 million units, the number of deals depreciated by 11.08 per cent to 3,861 deals from 4,342 deals, while the trading value improved by 61.89 per cent to N5.6 billion from N3.5 billion.

Unlike the two previous trading sessions this week, Flour Mills was the most active stock with the sale of 50.6 million units worth N1.5 billion, displacing Sterling Bank from the position.

Transcorp exchanged 38.9 million shares worth N39.3 million, FBN Holdings sold 21.5 million equities valued at N243.7 million, Ecobank traded 19.2 million stocks for N164.5 million, while GTCO sold 14.6 million shares for N403.0 million.

On the price movement chart, the market breadth was negative with 18 price gainers and 19 price losers, indicating a negative investor sentiment.

Red Star Express topped the laggards after its value declined by 9.86 per cent to N3.29. Pharma Deko dropped 9.83 per cent to sell for N2.11, ABC Transport depreciated by 9.09 per cent to 30 kobo, FTN Cocoa also deflated by 9.09 per cent to 40 kobo, while Consolidated Hallmark Insurance fell by 8.33 per cent to 55 kobo.

The risers were led by Neimeth yesterday as its equity price rose by 10.00 per cent to N1.98. Chams grew by 9.09 per cent to 24 kobo, Mutual Benefits Assurance appreciated by 8.00 per cent to 27 kobo, Honeywell Flour gained 6.95 per cent to trade for N3.54, while Caverton improved by 5.88 per cent to N1.80.