Loses in Chams, International Breweries Drives Stock Market Lower

Eromosele Abiodun

The Nigerian equities market closed lower at the close of trading yesterday as the Nigerian Exchange Limited (NGX) All-Share Index or ASI, which sjows the direction of the market decreased by 0.12 per cent to close at 39,204.52pts.

Yesterday’s performance was mainly due to the losses recorded in SCOA Nigeria Plc (-9.72%), VERITASKAP Plc (-8.70%), MANSARD Insurance Plc (-5.68%), Chams Plc(-4.55%) and International Breweries Plc (-4.00%), which offset the gains recorded in REGALINS Plc (+8.51%), Universal Insurance Plc (+5.00%), Sovereign Insurance Plc (+4.17%), First City Monument Bank Plc (+3.45%), Oando Plc (+3.18%).

In yesterday’s trade, market breadth index was flat with 15 losers against 15 gainers.

Sector performances were mainly negative yesterday with the Banking Sector (-0.32%) and Consumer Goods (-0.08%) sectors closing red, while the Oil and Gas (+0.55%) sector closed green and the Industrial sector closed flat.

In terms of activity levels, total volume decreased marginally by about 1 per cent, while total value increased by about 12 per cent, as investors exchanged about 354million units of shares worth about N3.20billion.

FBN Holding Plc was the most actively traded stock with about 86million units of shares worth about N641million.

The equities market negative closed yesterday can also be attributed to the loss recorded in the Banking and Consumer Goods sectors.

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

Market analysts reiterate that this may be a great period to pick up some quality names with a medium to long-term investment horizon.

Meanwhile, at the IEFX window, the Naira closed up by 0.13 per cent and 0.02 per cent vs the EUR and GBP closing at N486.26 and N566.41 respectively, while it depreciated against the USD by 0.02 per cent closing at N411.50.

At the parallel market, the Naira depreciated by 0.56 per cent, 0.41 per cent and 0.48 per cent against the USD, GBP and EUR to close at N535, N730 and N629 respectively.

Money Market rates rose tyesterday as Open Buy Back and Overnight rates increased by 183bps and 208bps to close at 8.83 per cent and 9.33 per cent respectively.

The bond market traded on a quiet note today, as yields on most maturities closed flat. We witnessed the yields on the 5yr, 7yr and 10yr benchmark bonds close flat at 10.57 per cent, 11.21 per cent and 11.56 per cent respectively.
In the near term, we expect market activity to be influenced by liquidity levels and foreign investor participation.