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Equities Market sheds N470bn as bear run persists

By on January 8, 2015

Trading at the Nigerian stock market continued on its bearish note on Tuesday as prices of blue chip equities plunged further.  The market, which opened the New Year with a decline of N240 billion in capitalisation recorded a further dip.

The market capitalisation shed N470 billion to close at N10.766 trillion, while  the Nigerian Stock Exchange (NSE) All-Share Index dipped by 4.2 per cent, from 33,943.29 to close at 32,522.31.

Heavy weights such Dangote Cement and Nigerian Breweries Plc continued to lead the decline. Having shed N170 billion the previous day, Dangote Cement lost another N161 billion  or N9.50 to close at N180.50 per share. Nigerian Breweries Plc also shed N15.83 to close at N147 per share. A total of 42 stocks dipped compared to 13 that appreciated. Most of the price losers are stocks among the two most capitalised on the NSE.

However,  Nigerian Breweries Plc led the losers’ chart  with 9.7 per cent followed by  United Bank for Africa Plc with 7.87 per cent. WAPIC Insurance Plc trailed with 7.81 per cent, just as  International Breweries Plc shed 7.7 per cent. Julius Berger Nigeria Plc, Guinness Nigeria Plc, Nestle Nigeria Plc, Glaxosmithkline Consumer Nigeria Plc, Zenith Bank Plc and Seplat Petroleum Development Company Plc went down by five per cent apiece.

The bearish sentiments affected all the sectors of  the market leading to negative close in the sectoral indicators. The Consumer Goods index led with  with a 6.0 per cent, while the Banking sector trailed with a 3.5 per cent. The Industrial  sector,  oil and gas and Insurance depreciated by 2.8 per cent two per cent and 1.7 per cent in that order.

Commenting on the market trend, analysts at Meristem Securities Limited attributed the dip to “the cautious trading as investors are strategically repositioning their portfolios in the light of the incessant decline in global oil prices, the gradual heating up of the polity and the gloomy mood that characterized the market in 2014.”
They therefore advised investors to remain cautious.

 

[ThisDay]