Equities Market Opens Week Bearish on Losses by Bellwethers

The Nigerian equities market started the week on a bearish note following losses by bellwether stocks such as Dangote Cement Plc, Nigerian Breweries Plc, GTBankPlc, FBN Holdings Plc. The benchmark index, the Nigerian Stock Exchange (NSE) All-Share Index declined by 0.06 per cent to close at 36,479.42, while market capitalisation ended lower at N13.32 trillion.

A total of 25 stocks depreciated compared with 21 that appreciated. Ikeja Hotel Plc led the laggards, shedding 9.9 per cent, trailed by Aluminium Extrusion Plc with 9.7 per cent. Beta Glass Plc fell and United Capital Plc went down by 9.09 per cent, just as NSL Technology Plc and LASACO Assurance Plc lost 8.3 per cent apiece.

On the other positive side, Consolidated Hallmark Insurance Plc and Niger Insurance Plc led the advancers with 10 per cent apiece. Union Diagnostic and Clinical Services Plc and Sunu Assurance Plc appreciated 9.0 per cent apiece.

Lafarge Africa Plc, Neimeth International Pharmaceuticals Plc and Diamond Bank Plc chalked up 8.9 per cent, 8.3 per cent and 6.8 per cent respectively.

However, performance across sectors was bullish as four of five traced indicators indices closed higher. The NSE Industrial Goods Index led with a gain of up 2.0 per cent followed by the NSE Insurance Index and NSE Banking Index that appreciated 1.0 per cent and 0.9 per cent in that order. Similarly, the NSE Oil & Gas Index gained 0.4 per cent. The NSE Consumer Index was the lone loser, shedding 0.5 per cent.

Analysts at Cordros Capital Limited said: “In our view, selloffs are likely to persist in the near-to-medium term, in the absence of a near-term one-off positive catalyst. However, stable macroeconomic fundamentals remain supportive of recovery on the long term.”