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NSE index plunges to 32,075.71 as bear run persists

By on December 11, 2014

The Nigerian Stock Exchange (NSE) declined by 0.43 per cent to 32, 932.41 from 33,075.71 the previous day as the Nigerian equities market continued  itsdownward  slide. Similarly, market capitalisation shed N47 billion to close at N10.872 trillion. So far, the ASI has lost 20.32 per cent. At the close trading yesterday, a total of 40 stocks depreciated compared to only seven that appreciated, indicating the high level of investor apathy as all attention is now focused on politics.

The seven stocks that recorded price gainers were led by PZ Cussons Nigeria Plc which rose by 10.1 per cent. Portland Paints followed with 4.3 per cent, while Wema Bank  Plc and Nestle Nigeria Plc chalked  up 4.2 per cent, and 2.2  per cent respectively. Other gainers were Skye Bank Plc(2.0 per cent); Ecobank Transnational Incorporated (0.56 per cent0 and Honeywell Flour Mills Plc (0.31 per cent).

Conversely, Transcorp Plc, Union Bank of Nigeria Plc and Seplat Petroleum Development Company Plc led the price losers with 5.0 per  cent apiece. Okomu Oil Palm Plc, Champion Breweries Plc, May & Baker Nigeria Plc, WAPIC Insurance Plc and Cadbury Nigeria Plc   shed 4.9 per cent apiece.

United Bank for Africa Plc, Mansard Insurance Plc and Caverton Offshore Services Group Plc lost 4.8 per cent each.

The Nigerian market has been under heavy pressure following exit of foreign investors in the last quarter of the year. For instance, the market went down by over eight per cent in November alone.
Analysts at FSDH Securities attributed the current bearish tread to the investors’ apathy in the market, on account of the continued threat pose on the economy as a result of the declining oil price, the regulatory headwinds affecting the banking stocks, security challenge in the northern part of the country affecting most of the financial results of fast moving consumer goods (FMCG).

“The fact that interest rate in the money market has been on the rise lately has also not helped the equity market,” they said.

Looking ahead, the analysts said they expect to see a high level of volatility in the equity market in December, as portfolio and fund managers begin to realign their portfolio to close the year.

 

[ThisDay]