November 28, 2018

By InvestAdvocate

Lagos (INVESTADVOCATE)-The Nigerian equities market on Wednesday declined  -0.48 percent to o 31,023.47 points — its lowest level since Jun 1. 2017 — following persisting selloffs across blue-chip counters; as Diamond Bank Plc emerged topmost loser, according to Cordros daily market update.

The update reports as a result of this trend, the Month-to-Date and Year-to-Date losses increased to 4.44 percent and 18.88 percent, respectively.

The report says among sectoral indices, the Oil & Gas and Industrial Goods indices fell -0.79 percent and -3.91 percent apiece, while the Banking index declined by -2.83 percent to closed negative, largely attributable to losses in the shares of oil marketing major, Oando Plc and cement producer, Dangote Cement Plc; both depreciated -6.06 percent and -1.55 percent each,  Zenith Bank Plc also lost by -1.48 percent.

According to Cordros, on the flip side, investor interest in the shares of re-insurer, Continental Reinsurance Plc and and soap and detergent maker, PZ Cussons Nigeria Plc led to gains of +10.00 percent and +8.06 percent and led to positive returns in the Insurance  sector by +0.51 percent and Consumer Goods by +0.08 percent respectively.  

The update says market breadth remained negative, with 23 losers and 12 losers posted, led by Diamond Bank Plc which lost by -9.88 percent and Continental Reinsurance Plc and Continental Reinsurance Plc which gained by +10.00 percent.

Total volume of trades grew by 20.9 percent to 220.40 million units, valued at N2.73 billion and exchanged in 3,252 deals.

“Our outlook for equities in the near-to-medium term is negative, and we guide investors to trade cautiously, amidst absence of a near term positive catalyst and political jitters ahead of the upcoming 2019 elections. However, macroeconomic fundamentals remain stable and supportive of recovery in the long term,” the Cordros report affirmed.