The nation’s stock market fell further on Monday, extending its losing streak to six consecutive trading sessions. The market opened the week lower as the All Share Index of the Nigerian Stock Exchange shed 0.4 per cent to close at 30,322.19 basis points while the year-to-date loss worsened to 3.5 per cent.
The market capitalisation of equities listed on the NSE dropped to N13.354tn on Monday from N13.402tn on Friday. Twenty firms, led by Cement Company of Northern Nigeria Plc, recorded price losses on Monday while 15 firms gained at the close of trading, with Consolidated Hallmark Insurance Plc leading the pack.
Analysts at Afrinvest Securities Limited noted that activity level weakened as volume and value traded slid by 11.7 per cent and 10.6 per cent to 247.3 million units and N3.5bn respectively.
The top traded stocks by volume were Zenith Bank Plc (70.3 million units), Guaranty Trust Bank Plc (23.1 million units) and Ecobank Transnational Incorporated (18.1 million units) while the top traded stocks by value were Zenith Bank (N1.4bn), GTB (N706.1m) and MTN Nigeria Communications Plc (N244.2m).
Performance across sectors was largely bearish as all indices declined, except the Insurance index, which rose by two basis points. The industrial goods index dropped by 2.3 per cent to emerge the top loser, while the consumer goods index shed 0.6 per cent. The oil and gas and banking indices declined by 0.2 per cent and 0.1 per cent respectively
The Afrinvest analysts said, “Investor sentiment as measured by market breadth (advancers/decliners ratio) strengthened to 0.8x from 0.4x recorded in the previous trading session as 15 stocks advanced against 20 stocks that declined. “Given the negative trend in the equities market, we expect the bearish performance in the market to persist but with opportunities for bargain hunting.”
Analysts at Cordros Capital Limited said, “In the absence of a positive catalyst, we guide investors to trade cautiously in the short term. However, stable macroeconomic fundamentals and compelling valuation remain supportive of recovery in the mid-to-long term.”
https://punchng.com/stock-market-extends-losing-streak-to-six-day
