BEARISH SENTIMENTS DRAG STOCK MARKET INDEX FURTHER BY 0.4%

The reign of bears continued unabated on the trading floor of the Nigerian Stock Exchange (NSE), as more bellwether stocks depreciated in price, resulting to a further decline in the All-share index by 0.4 per cent.
  
Yesterday, the All Share Index (ASI) shed 117.53 absolute points, representing a dip of 0.4 per cent to close at 29,818.80 points. Similarly, the market capitalisation lost N52 billion to close at N13.140 trillion.
  
Tuesday’s performance was influenced by price depreciation in medium and large capitalised stocks, among which were, Nestle Nigeria, Okomu Oil, Chemical and Allied Products (CAP), Julius Berger, and International Breweries.

Analysts at Afrinvest Limited maintained a bearish outlook for subsequent trading sessions, but were optimistic that investors would continue to position in undervalued stocks with good fundamentals.
  
Also, analysts at Cordros Capital Limited, stated: “In the absence of a positive catalyst, we guide investors to trade cautiously in the short term. However, stable macro-economic fundamentals and compelling valuation remain supportive of recovery in the mid-to-long term.”
  
Market breadth was negative with 20 gainers against 21 losers. Champion Breweries recorded the highest price gain of 10 per cent to close at N1.32 per share. NEM Insurance followed with 8.78 per cen, to close at N2.23, while Unity Bank rose 8.57 per cent to close at 76 kobo, per share.
Linkage Assurance gained 8.33 per cent to close at 52 kobo, and Oando 6.76 per cent to close at N3.95, per share.
On the other hand, Associated Bus Company, and Okomu Oil led the losers’ chart with 10 per cent each, to close at 27 kobo, and N66.60, respectively, per share.

International Breweries and CAP followed with 9.97 per cent each, to close at N16.70, and N28, respectively, while Julius Berger lost 9.93 per cent to close at N19.50, per share.
  
However, total volume traded rose 1.65 per cent to 2.91 billion units, valued at N11.225 billion, exchanged in 3,324 deals. Wema Bank traded 2.4 billion shares valued at N1.48 billion. Zenith Bank followed with 409.97 million shares worth N8.2 billion, while Access Bank traded 13.68 million shares at N87.59 million.
  
United Bank for Africa (UBA) traded 9.75 million shares valued at N59.52 million, while Guaranty Trust Bank transacted 9.66 million shares worth N297.44 million.

SOURCE: GUARDIAN