Nigeria: Investors Lose N4.23bn As Consumer Goods Stocks Decline

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The equities market of the Nigerian Exchange Limited declined by N4.23bn at the end of trading on Monday amid selloffs in consumer goods stocks.

The NGX All-Share Index declined by a marginal 0.02 per cent, closing at 39,252.89 basis points from 39.252.89bps on Friday while the market capitalisation dropped to N20.45tn and N20.56tn.

The trading volume on Monday rose by 17.00 per cent to 210.95 million shares valued at N1.38bn in 3,989 deals from the 180.30 million shares worth N1.72bn exchanged in 3158 deals on Friday.

Analysing by sectors, the NGX Consumer Goods Index shrank by 0.41 per cent, missing out on gains made in other sectors.

The NGX Banking, Insurance, Oil & Gas, and Industrial indices increased by 0.48 per cent, 0.04 per cent, 0.32 per cent and 0.03 per cent, respectively.

Stocks on the Premium Board saw gains on average as the index rose by 0.05 per cent, while the NGX Main Board decreased by 0.09 per cent.

Twenty-one tickers gained at the end on Monday, just as 15 saw losses in their share prices.

Linkage Assurance Plc was first on the gainers’ table with an 8.93 per cent increase, closing at N0.61 per share.

It was followed by FTN Cocoa Processors Plc, which rose by 8.89 per cent to N0.49 per share.

Mutual Benefits Assurance Plc, Ecobank Transnational Incorporated and Universal Insurance Plc also recorded gains as they closed 7.14 per cent, 5.77 per cent, and 5.00 per cent higher respectively at the end of trading on the floor of the exchange.

Major losers on Monday were GlaxoSmithKline Nigeria Plc, which fell by 9.56 per cent; Consolidated Hallmark Insurance Plc (8.62 per cent); and Sovereign Trust Insurance Plc (7.69 per cent). They closed at N.15, N0.53 and N0.24 respectively.

Access Bank Plc was the most traded stock by volume and value at 30.52 million shares and N282.14bn respectively.

Analysts from Cordros Capital said, “The domestic bourse started the week’s trading with mixed sentiments, albeit with a bearish tilt, as profit-taking activities witnessed in Stanbic IBTC (-1.4 per cent), UBA (-1.9 per cent), and Flour Mills Plc (-4.2 per cent) undermined the market’s performance.

“The Nigerian equity market resumed the new week on a bearish sentiment as market performance indicators shed 0.02 per cent following sell-off in highly capitalised consumer goods companies, such as May and Baker Nigeria Plc, Flour Mills Nigeria Plc  and Dangote Sugar Plc, said analysts from Atlas Portfolios Limited.

“We expect the market to upturn the negative sentiment in the next trading session as the 365-tenor yield rate dropped further to 6.87 per cent.”

– Punch

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