By Chukwuma Umeorah
Nigeria’s stock market yesterday, continued its downward trend as the All Share Index (ASI) declined by 0.28 per cent as investors remain on the sell-off side of the market.
Yesterday’s downturn was attributed to losses recorded in stocks namely, Zenith bank, GTCO, Dangote Sugar and 20 others.
In the past few weeks of trading, the stock market has closed largely in hunt negative territory as some analysts suggest that the impact of high yields in the fixed-income have spurred investors to switch sides leading to massive sell-offs.
Cowry Research predicts “a week of gradual gains in the market driven by dividend qualifications, despite recent reversal signals.” It added that there are entry oppourtunities emerging due to the oversold nature of the market.
“Our outlook remains mixed, contingent on several factors including macroeconomic reports and foreign exchange market activities,” it said.
Meanwhile, at the close yesterday’s trading session on the Nigeria Exchange Limited (NGX) the ASI and equities market capitalisation depreciated from preceding trading day’s highs of 98,152.91 points and N55.51trillion respectively to 97,879.94 points and N55.357 trillion. This represents a one week loss of 1.79 per cent, a four week loss of 6.01per cent, but an overall year-to-date gain of 30.9 per cent.
Out of the 126 equities that participated in trading, yesterday’s session ended with 23 gainers and 23 losers.
Sterling Bank led the gainers with 9.95 per cent share price appreciation closing at N4.20 per share, followed by FBN Holdings which added 9.83 per cent closing at N22.35 per share. Honeywell Flour Mill and Tantalizers added 9.4 per cent and 9.09 per cent to close at N3. 49 and N0. 36 per share.
On the losing side was Dangote Sugar, which depreciated by 10 per cent at N43.20 per share, followed by Secure Electronic Technology also shedding 10 per cent to close at N0.54 per share. CAP and Berger paints lost 9.88 per cent and 9.87 per cent to close at N26 and N13.70 per share.