Major losses drag NSE index down by 1.2%

Losses recorded by 32 stocks on Wednesday dragged major Nigerian Stock Exchange indices down for the third straight session this week.

The NSE’s All-Share Index fell by 1.29 per cent or 485.93 basis points from 37,589.60 points on Tuesday to 37,103.67 points.

Similarly, the market capitalisation of the listed equities fell by N145bn or 1.29 per cent to close at N11.750tn down from N11.904tn.

The NSE-30 Index was down by 1.56 per cent or 27.6 basis points to 1,732.80 points, down from 1,760.40 points the previous day, while the NSE’s Consumer Goods Index and NSE Banking Index fell by 2.61 per cent and 0.71 per cent to close at 1,033.65 points and 404.40 points, respectively.

The Insurance Index and NSE Oil and Gas Index were also down, shedding 1.78 per cent and 0.81 per cent to close at 135.93 basis points and 201.92 points in that order.

John Holt Plc was the biggest loser for the day, falling by 9.38 per cent or 12 kobo to close at N1.16. It was followed by Ikeja Hotel Plc and Courteville Business Solutions Plc, which fell by 9.20 per cent and 8.86 per cent to close at 79 kobo and 72 kobo per share, respectively.

PZ Cussons Nigeria Plc and NEM Insurance Company (Nigeria) Plc shed 8.68 per cent and 8.57 per cent to close at N40.18 and 64 kobo per share, while Eterna Plc and Nestle Nigeria Plc recorded a price depreciation of 7.62 per cent and seven per cent to close at N2.91 and N930.

The Chief Executive Officer, Trust Yield Securities Limited, Mr. Ola Yussuf, said the losses were not a cause for concern as they reflected the nature of the market.

He explained that some of the losses could be due to the fact that the impact of the impressive second quarter results posted by some of the companies was waning.

He said, “They cannot be having good news every time. When they had good news, the market reacted to them by going up. But the effect of the good news has waned and, therefore, their prices are stabilising. That is what the market is all about; fluctuation – it goes up and it comes down. It goes up when there is positive news and then it goes down, encouraging investors to buy.”

Nineteen stocks, however, recorded price appreciation on Wednesday led by Trans-nationwide Express Plc, which gained eight kobo or 10 per cent to close at 88 kobo.

Source: Punch