May 28, 2018
By Abdulquddus OKELE InvestAdvocate
Lagos (INVESTADVOCATE)-The Nigerian equities market on Monday closed the first trading session of the week in the red, losing 0.75 percent on sell-offs across sectors, according to InvestmentOne report.
At the close of the session on the Nigerian Stock Exchange (NSE), market breadth index was negative with 10 gainers against 33 stocks that declined. Insurer, Hallmark Insurance Plc emerged the top gainer with a gain of 6.67 percent per share, while FCMB Plc topped the losers chart as the worst performing stock with a loss of 9.09 percent per share.
According to InvestmentOne report, top insurer, AIICO Insurance Plc was the most actively traded on the domestic bourse with 40 million units of shares worth N23.63 million traded.
In terms of sectoral performance, the NSE Industrial index lost 2.25 percent on the back of the decline in the shares of top cement producer, Lafarge Cement Wapco Nigeria Plc declined by 4.94 percent.
The NSE Banking index shed 1.95 percent following the losses in the shares of top tier lenders, Diamond Bank Plc recording a 5.11 percent lost, FBN Holdings down by 4.64 percent, Guaranty Trust Bank Plc declining 2.26 percent,Zenith Bank Plc down by 2.06 percent and pan-African lender United Bank for Africa Plc losing 1.89 percent.
Similarly, the NSE Oil & Gas index closed down 0.64 percent, majorly driven by Japaul Oil & Maritime Services Plc with a loss of 8.33 percent, MRS Oil Nigeria Plc down by 4.99 percent, while oil marketing major, Oando Plc and Caverton Offshore Support Group Plc both dropping 4.83 percent and 4.68 percent apiece.
Also, the Consumer Goods index depreciated by 0.09 percent, due to the sell-offs in the shares of Honeywell Flour Mills Plc, Dangote Flour Mills Plc and beer maker, Nigerian Breweries Plc all down 4.64 percent, 3.93 percent and 0.35 percent respectively.
” Going forward, we expect the market to remain volatile in the absence of positive news flow. With this said, we highlight that the recent sell-off in the equities market presents an entry opportunity for investors with a medium to longer term horizon,” InvestmentOne report said.
“In our view, downbeat prices have created opportunity for bargain-hunting in value stocks, as still-positive macroeconomic fundamentals suggest likelihood of gains in the medium to long term. However, continued selloffs will likely cause chary trading among investors to continue in the near term,” Cordros update affirmed.
