Seplat, Forte, Guinness, other stocks drive market’s 0.20% loss

Seplat Petroleum Development Company plc, Forte Oil plc, Guinness Nigeria plc, Lafarge Africa plc, and Nigerian Breweries plc respectively led on the list of 26 companies that lost their share values after yesterday’s trading on the floor of Nigerian Stock Ex- change (NSE). The NSE All Share Index (ASI) closed negative by 0.20 percent or -60.35 points to 29,759.04 points from 28,819.39 points re- corded the preceding trading day. Also, the market capitalisation depreciated by N2bn to N9.91trn, from N9.93trn recorded the preceding trading day.

At the close of trading on Customs Street yesterday, a total of 19 stocks gained on the bourse while 26 stocks lost their values, leaving 51 stocks unchanged. In line with analysts’ expectation, the Monetary Policy Committee (MPC) Wednesday took a wait out position on all the key rates keeping them at the levels they were in the run off to the meeting it held from January 19 to 20, 2015. Despite expressing some concerns on the slowing global recovery, decreasing global oil price that threatens fiscal sustainability, security challenges in the North that has affected agricultural produce and excess liquidity in the banking system and capital flow reversal that continue to fuel ex- change rate volatility, the Committee chose to take a hold position in order give the previous monetary policy actions the needed time lag to have impact. Seplat led the pack of losers after its share price dropped by N4.94, from N305 to N300.06; followed by Forte Oil plc which dropped from N229.8 to N227, after losing N2.8.

Guinness Nigeria plc lost N1.5, from N131.5 to N130; Lafarge Africa lost N1, from N82 to N81, while Nigerian Breweries plc dipped by N0.5, from N145.5 to N145. In 3,901 deals, equity dealers’ ex- changed 229,482,210 units valued at N3.290bn. On the gainers table, 7-Up Bottling Company plc, UAC of Nigeria plc, Ashaka Cement plc, GT Bank plc, and Evans Medical plc respectively occupied the topmost position. The share price of 7-Up Bottling Company plc rose from N160.1 to N162, after adding N1.9; UAC of Nigeria plc rose from N34.14 to N35.84, adding N1.7; Ashaka Cement rallied by N0.88, from N20.4 to N21.28. GTBank plc rose from N20.72 to N20.96, adding N0.24, while Evan- med rallied by N0.1, from N2.17 to N2.27. The volume of trading decreased as 229.48 million shares worth N3.29bn were exchanged compared to 311.50 mil- lion shares worth N4.14bn traded the preceding day. Also at the Nigerian Stock Exchange, AIICO Insurance plc has notified the Nigerian Stock Ex- change (NSE) that it is currently in discussions with the International Finance Corporation (IFC) for the grant of a $20m convertible loan to the Company. Under the arrangement, IFC has an option to convert any unpaid part of the loan advanced to the Company into equity holdings in the Company.

Source : BusinessDay

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