Investors in the nation’s stock market have embarked on a selling spree as the market lost N263bn in five consecutive days. Higher sell pressures were seen in market bellwether stocks such as Nestlé Nigeria Plc, Cement Company of Northern Nigeria Plc and Dangote Cement Plc Nestlé investors had embarked on a selling spree since Monday last week, which dragged its share price 18 per cent lower, from N1,319 per share to N1,080 per share.
Dangote Cement saw its share price drop from N167 on August 26 to close at N155 on Tuesday. Analysts at Afrinvest Securities Limited said the higher sell pressures in major bellwethers extended the bearish run of the market. The market capitalisation of equities dropped to N13.158tn on Tuesday from N13.421tn on Tuesday last week.
The All Share Index depreciated by 0.16 per cent to settle at 27,047.58 basis points, which worsened the year-to-date loss to -13.9 per cent. However, activity level strengthened as volume and value traded advanced by 25.4 per cent and 13.2 per cent to 364.216 million units and N4.862bn, respectively. The top traded stocks by volume were Guaranty Trust Bank Plc (78.6 million units), Courteville Business Solutions Plc (49 million units) and Access Bank Plc (43.9 million units) while the top traded stocks by value were GTB (N2.1bn), Zenith Bank Plc (N732.9m) and Dangote Cement (N683.7m).
Performance across sectors was largely bearish as four sectors recorded losses. The consumer goods index led the losers, down by 2.22 per cent on the back of continuous sell-offs in Nestlé Nigeria. Similarly, the industrial goods index lost 1.61 per cent due to major losses recorded in Dangote Cement and Cement Company of Northern Nigeria. Major losses in Continental Reinsurance Plc dragged the insurance index down by 0.49 per cent.
Also, major price depreciation in Forte Oil Plc dragged the oil and gas index lower by 0.19 per cent. On the flip side, the banking index appreciated by one per cent following buying interest in FBN Holdings Plc and GTB. Similarly, gains in MTN Nigeria Communications Plc buoyed the positive performance of the AFR-ICT index. Investor sentiment, as measured by market breadth (advance/decline ratio), strengthened to 1.5x from 1.1x recorded on Monday as 18 stocks advanced against 12 stocks that declined.
The best performing stocks were UACN Property Development Company Plc, FBN Holdings, Dangote Flour Mills Plc, Wapic Insurance Plc and Courteville Business Solutions, which saw respective share price appreciation of 9.26 per cent, 7.53 per cent, 5.95 per cent, 5.41 per cent and 4.76 per cent.
The worst performing stocks were Thomas Wyatt Nigeria Plc, Continental Reinsurance, Cement Company of Northern Nigeria, University Press Plc and UACN Plc, whose share prices declined by 9.52 per cent, 7.36 per cent, 6.61 per cent, 6.25 per cent and 62.06 per cent, respectively. Due to the higher sell pressures witnessed on Tuesday, analysts at Afrinvest Securities said they maintained a negative outlook for the market.