Stock market indices sustain sliding profile, down by N75b

The equity sector of the Nigerian Stock Exchange (NSE) sustained the sliding profile which began Monday, at the end of yesterday’s transactions, even as major highly capitalised recorded price depreciation, causing market capitalisation to plunge further by N75billion.

Specifically, at the close of trading yesterday, the All-share index dropped by 211.27 points or 0.5 per cent from 43,538.16 recorded on Wednesday to 43,326.89. Also, market capitalisation fell by N75billion to N15.548trillion from N15.623trillion achieved on Wednesday.

Analysts attributed the drop in indices to panic arising from the correction wave sweeping across the international markets that was extended to Nigeria after foreign investors had earlier taken position in expectation of the fourth quarter (Q4) numbers.

“With the ongoing market shakeout gradually coming to end ahead of the earnings-reporting season, investors should focus on companies with juicy profit margins and strong balance sheets that will rebound powerfully after their dislocation from this correction wave.

“As investors expect early filers to hit the market with their full year earnings reports in the comings days and weeks, first tier banks are likely to pay good dividend, but because of their current market prices yields it may not be too attractive.”

Nestle topped the losers’ chart with 72.20 kobo to close at N1,372.80 per share. Nigerian Breweries followed with 4.60 kobo to close at N137.40 per share. Stanbic IBTC lost 0.30 kobo to close at N45.05 per share.

Union Bank depreciated by 0.20 kobo to close at N8.25 per share. FBN Holdings dropped 0.20 kobo to close at N12.55 per share.

Forte Oil emerged the day’s highest price gainer with 2.25 kobo to close at N48.20 per share, while International Breweries followed with 1.50 kobo to close at N59.00 per share.

Flour Mills added 0.80 kobo to close at N33.00 per share. Cadbury gained 0.65 kobo to close at N15.50 per share.

On the activity chart, Sterling Bank dominated in volume terms with 1.7 million shares worth N3.8billion, while Skye Bank followed with 111 million units worth N113million.

United Bank for Africa accounted for 43 million shares valued at N531million. Jaiz Bank traded 32 million shares worth N33million.

First City Monument Bank exchanged 32 million shares valued at N88million.

In all, investors stake 2.2 billion shares worth N7.5billion in 5,468 deals, up from a total of 508 million units worth N4.6 billion exchanged in 6,155 deals on Wednesday.