August 1, 2018
By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-Nigerian Stocks on Wednesday reversed its previous sessions uptrend; as bears resurfaced in the equities market, halting the four-day bull run, with the benchmark dropping 1.09 percent to 39,031.72 points, as investors booked profit on previous gains.
Total volume of trades dipped by 1.94 percent to 240.21 million units, valued at N4.99 billion, and exchanged in 3,494 deals, according to Cordros update.
Drugmaker, Neimeth International Pharmaceuticals Plc with a gain of +10.00 was the topmost gainer, while Chemical and Allied Products Plc with a loss of +10.00 percent led the losers’ chart.
According to the update, top tier lender, Zenith Bank Plc with a gain of +0.22 percent was the most actively traded with 94 million units of shares worth about N2.19 billion.
In terms of sector performance, the Nigerian Stock Exchange (NSE) Consumer Goods index declined by 2.31 percent; following the sell-off in the shares of beer maker, International Breweries Plc and detergent producer, PZ Cussons Nigeria Plc; both down -9.73 percent and -7.28 percent respectively. While food and beverage manufacturer, Nestle Nigeria Plc and Nigerian Breweries Plc both depreciated -2.50 percent and -1.90 percent each.
Also, the NSE Banking index closed down by 0.66 percent; majorly due to losses in the shares of Fidelity Bank Plc and Access Bank Plc both dipped by -8.04 percent and -3.00 percent apiece. Pan-African lender, the United Bank for Africa Plc and Diamond Bank Plc both depreciated by -2.62 percent and -2.38 percent each, Guaranty Trust Bank Plc dropped by -0.37 percent.
In the same vein, the NSE Industrial index shed 0.42 percent as a result of the losses in the shares of CAP by -10.00 percent and cement producer, Dangote Cement Plc which lost by -1.28 percent.
On the positive side, the NSE Oil & Gas index gained 0.57 percent; largely driven by the shares of oil marketing majors, Total Nigeria Plc and Oando Plc both gained by +3.83 percent and +1.74 percent respectively; while Eterna Plc dropped by +1.67 percent.
‘We guide investors to trade cautiously in the short-to-medium term, as the absence of a positive one-off catalyst and brewing political concerns, continue to cast a shadow on our outlook for risky assets. However, the likelihood of recovery in the long term remains supported by stable macroeconomic fundamentals,” Cordros report affirmed.
