November 26, 2018
By InvestAdvocate
Lagos (INVESTADVOCATE)-The Nigerian equities market on Monday started the week bearish, with the benchmark index down -0.46 percent to 31,533.50 points, following broad losses across Banking sector stocks; led by Diamond Bank Plc.
Diamond Bank led the losers chart with a loss of -9.47 percent, while and soap and detergent maker, PZ Cussons Nigeria Plc appreciated +9.86 percent, as market breadth report shows negative sentiment with 19 losers and 18 gainers apiece.
The Cordros update reports following this trend, the Month-to-Date and Year-to-Date losses increased to 2.73 percent and 17.42 percent, respectively.
The report says among sectoral indices, the Banking index declined by -0.91 percent and recorded the largest loss, owing to the selloffs in the shares of top tier lenders, Guaranty Trust Bank Plc and pan- African lender, United Bank for Africa Plc; both depreciated by -1.37 percent and -1.92 percent each.
In the same vein, the Consumer Goods and Industrial Goods sectors plunged by -0.31 percent and -0.04 percent to also close negative, owing to losses in the shares of top brewer, Nigerian Breweries Plc and cement manufacturer, Cement Company of Northern of Nigeria Plc; both dropped -2.58 percent and -1.79 percent apiece.
On the flip side, interest in the shares of Continental Reinsurance Plc up +3.33 percent and oil marketing major, Oando Plc which gained 1.04 percent led to gains in the Insurance and Oil & Gas indices by +0.62 percent and +0.12 percent respectively.
According to Cordros, total volume and value of trades dropped by 53.2 percent and 26.1 percent to 104.87 million units and N1.94billion, respectively, exchanged in 2,911 deals.
“We guide investors to trade cautiously in the short to medium term, as selloffs are likely to persist, amidst brewing political uncertainty, and the absence of a positive catalyst. However, stable macroeconomic fundamentals remain supportive of long-term gains,” the Cordros update affirmed
