Equities market extends losing streak amid investors’ negative sentiment

The equities market of the Nigerian Exchange Limited (NGX) extended its losing All-Share Index (ASI) shed 1.60 basis points, representing a decrease of 0.004 per cent, to close at 39,251.29 basis points.

Also, the overall market capitalization closed the same as the previous trading day at N20.451 trillion, while traded shares valued at N2.872 billion as market indices were relatively flat.

Sector performances were mainly positive today with the Oil and Gas (+1.00per cent) and Consumer Goods (+0.52per cent) closing green, while the Banking (-0.31%) sector closed red and Industrial closed flat.

Yesterday’s market performance was driven by price depreciation in large and medium capitalised stocks which are; UAC of Nigeria (UACN), Guaranty Trust Bank Holding Company (GTCO), Ecobank Transnational Incorporated (ETI), Transcorp Hotel and United Bank for Africa (UBA).

On market outlook, analysts at Afrinvest Limited said “In the next the trading session, we expect the mixed performance to be sustained in the absence of any positive catalyst.”

Market breadth closed negative, recording 15 gainers and 21 losers. United Capital recorded the highest price gain of eight per cent, to close at N8.10, per share.

International Breweries followed with a gain of 7.53 per cent to close at N5.00, while Honeywell Flour Mills appreciated by 6.67 per cent to close at N4.00, per share.

Oando went up by 6.02 per cent to close at N4.40, while Africa Prudential appreciated by 5.79 per cent to close at N6.40, per share. On the other hand, Cornerstone Insurance led the losers’ chart by 8.77 per cent to close at 52 kobo, per share. Universal Insurance followed with a decline of 4.76 per cent to close at 20 kobo, while ETI shed 4.55 per cent to close at N5.25, per share.

NEM Insurance shed 4.50 per cent to close at N1.91, while UAC of Nigeria (UACN) depreciated by 4.09 per cent to close at N10.55, per share.

The total volume of trades increased by 68.7 per cent to 355.936 million shares, worth N2.872 billion, and traded in 4,241 deals.

Transactions in the shares of FBN Holdings topped the activity chart with 92.290 million shares valued at N687.727 million.

Access Bank followed with 75.686 million shares worth N711.909 million, while Universal Insurance traded 25.240 million shares valued at N5.049 million.

United Bank for Africa (UBA) traded 18.386 million shares valued at N138.642 million, while Zenith Bank transacted 14.304 million shares worth N346.432 million.

According to analysts at Investment One research, “The equities market closed flat today due to the loss recorded in the Banking sector, which offset the gains in other sectors.

“Going forward, we expect investor’s sentiments to be swayed by the search for real positive returns and developments in the interest rate space.

“We reiterate that this may be a great period to pick up some quality names with a medium to the long-term investment horizon.”