Equity Market Closes on a Negative Note

Photo L-R: Managing Director/CEO, Resort Savings and Loan Plc, Mr. Abimbola Olayinka; Executive Director, Business Development, The Nigerian Stock Exchange (NSE), Mr. Haruna Jalo-Waziri; and Chairman, Resort Savings and Loan Plc, Chief Francis Babatunde Adefarati  at the presentation of “Facts Behind the Figures" of the company to The Nigerian Stock Exchange community today in Lagos.

The equities’ market closed Tuesday on a negative note, as the Nigerian Stock Exchange (NSE) All-Share Index depreciated by 0.32% to close at 38,227.63 basis points, compared with the depreciation of 0.19% recorded on Monday. Its year-to-date return currently stands at +36.14%.

The market capitalisation also depreciated by 0.32% to close at ₦12.10 trillion, compared with the depreciation of 0.19% recorded previously to close at ₦12.14 trillion.

Commenting on Tuesday’s trading, Proshare Nigeria, a financial market analytical firm, said, “Market outlook reveals continued profit taking activities as speculators maintained grip on the bourse.”

Stock Performance
According to Afrinvest, an investment bank, Unity Bank dropped 8.7% as sentiments turned bearish during the session. Glutting offers at the close of proceedings also suggests that this trend could continue tomorrow. Buyers also erred on the side of caution during the day's proceedings; subsequently, GT Bank dropped 0.3% while Stanbic IBTC and FCMB lost 1.1%, 1.5%.

On the flip side, UBA and Sterling Bank were up 2.9% and 2.5% while Zenith Bank, Diamond Bank and FBN Holding recorded marginal gains of less than 1.0% at the close of the session.

The breweries sector was also skewed to the sell side; the surge in the price of NB was an incentive for participants seeking to exit positions leading to a 1.8% loss. International breweries also dropped 8.2% on the back dwindling demand. Guinness was divergent to the trend with a 0.9% mark-up and demand that could sustain this trend tomorrow.

Wapco lost a further 0.5%; however, fairly matched closing bids and offers could curb this trend tomorrow. CCNN headed south with a 1.0% loss while Ashaka Cement and Dangote Cement recorded no change.