Investors lost N21.3 bn at Nigerian stock markets

The performance of the domestic equity market was bearish today as investors continued to book profit in some large-cap stocks – FBNH (-4.5%), ZENITH (-0.6%) and MOBIL (-5.7%) – dragging the All Share Index (ASI) to shed 0.2 per cent and close lower at 36,232.66 points while YTD loss deteriorated to -5.3 per cent. Hence, investors lost N21.3 billion as market capitalisation fell to N13.2 trillion. However, activity level strengthened as volume and value of stocks traded increased 65.2 per cent and 76.9 per cent to 188.3 million units and N1.3 billion respectively. The most traded stocks by volume were UBA (27.3m), LAWUNION (25.0m) and ZENITH (19.9m) while ZENITH (N471.4m), UBA (N260.2m) and GUARANTY (N158.8m) led by value.

Performance across sectors under our coverage was bearish for the second consecutive day as 4 of 5 indices closed lower. The Insurance index, today’s biggest loser fell 1.2% following profit taking in LINKASSU (-10.0%) and LAWUNION (-10.0%). Similarly, the Oil & Gas and Banking indices lost 0.7 per cent and 0.1 per cent respectively on account of sustained sell pressures in MOBIL (-10.0%), ZENITH (-0.6%) and FIDELITY (-3.7%). The Industrial Goods index closed flat while the Consumer Goods index, the only gainer advanced 0.1 per cent, as buy interest in INTBREW (+1.6%) lifted the index.

The stock index fell for the fifth straight session, down 0.4 per cent to 36,154 points. Stocks have fallen 5.1 percent so far this year, after climbing 42 percent last year. Second-quarter earnings have been mixed, with most  banks posting declines in loan growth, citing a weak economy, while several consumer goods companies have recorded lower profits. Newly-listed fertiliser firm Notore reported a wider loss before taxes for the nine-months to June. Its shares have dropped 8.8 per cent in the week after listing.

Political developments ahead of an election next year, in which President Muhammadu Buhari is seeking re-election, have also dented investor sentiment, analysts say. “Recent declines have been concentrated on a few large-cap stocks. Pressure on Nigerian Breweries may be on the back of slightly disappointing first half of 2018 earnings, but Dangote Cement numbers were in line with expectations,” said Michael Famoroti, chief economist at Vetiva Capital.

Top decliners were FBN Holdings, Fidelity Bank Transcorp, Diamond Bank and FCMB, all down more than 4 percent. Nigerian Breweries, the local unit of Dutch brewer Heineken , shed 2.9 percent. 

Market Statistics Thursday, 9th August 2018

Market Cap (N’bn)                              13,228.2

Market Cap (US$’bn)                                 43.2

NSE All-Share Index                           36,232.66

Daily Performance %                                  (0.2)

Week Performance %                                 (1.2)

YTD Performance %                                   (5.3)

Daily Volume (Million)                                188.3

Daily Value (N’bn)                                          1.3

Daily Value (US$’m)                                       4.2