The stock market on Monday fell for the ninth consecutive day on the back of losses recorded by 30 stocks, with key market indicators, the All-Share Index and market capitalisation down by 0.32 per cent each.
Nigerian stocks fell to a more than three-month low as investors shed banking, consumer and oil shares.
The NSE ASI shed 101.06 basis points to close at 31,628.20 basis points, 11.5 per cent lower than its 2015 peak recorded on April 2. The market capitalisation fell to N10.801tn from 10.836tn on Friday.
The index of Nigeria’s top 10 consumer goods stocks declined 1.15 per cent on Monday, weighing on the all-share index.
The top decliners were Flour Mills Nigeria Plc, Honeywell Flour Mill Plc, Union Bank Nigeria Plc, and Oando Plc, which lost 4.98 per cent, 4.95 per cent, 4.94 per cent and 4.90 per cent respectively.
There were 11 gainers on Monday, led by Unity Bank Plc, which gained 4.68 per cent to close at N2.46 per share.
At the close of trading, investors bought and sold a total of 264.356 million shares valued at N5.462bn in 3,048 transactions.
Following the emergence of Muhammadu Buhari as president, the stock market had rallied impressively, after weeks of sell-offs on the back of political tensions before the election. The market capitalisation of listed equities hit a peak of N12.135tn on April 2.
But since then, the country’s stock market has continued to take a hit from worries over the continued slide in the naira and the impact of persistently low oil prices on government finances.
Analysts at Vetiva Capital Management Limited in a report on Friday had highlighted the potential for modest gains in select large caps given the length of recent losses, saying, “We expect bearish market sentiment to persist in the coming week even as bank earnings season kicked off this past week on a negative note.”
On their part, analysts at Meristem Securities Limited in their investment guide for the week and outlook for the second half of the year, said the Nigerian equities market, pressured by spill-over effects from falling global oil prices, fragile domestic economic fundamentals and largely unimpressive company performances, recorded relatively low market activity in the first half of 2015 evidenced by a 3.46 per cent decline in the All Share Index.
All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from PUNCH.
Source : Punch