12 December 2014, Lagos – It was another day for the bears and they sank deeper into the marrows of the investors. Nigerian equities slumped to one-year low yesterday at the Nigerian Stock Exchange (NSE) as the downtrend at the stock market continued unabated. Investors lost N377 billion with average percentage loss during the five-hour trading session standing at -3.54 per cent.
With more than four losers for every gainer, the overwhelming bearishness at the market was further evidenced by substantial losses recorded across the sectors. Losses ran into four to three digits as against few points recorded by gainers.
The downtrend pushed average year-to-date loss at the equities market to -24.84 per cent. With four consecutive losses, the benchmark indices at the NSE slumped to 52-week low. The All Share Index (ASI), the composite index that tracks prices of all quoted equities, dropped from its opening index of 32,203.62 points to close at 31,062.03 points.
Aggregate market value of all quoted equities slumped to N10.255 trillion compared with its opening value of N10.632 trillion, indicating a loss of N377 billion.
Market analysts attributed the decline to selling pressure across the sectors as investors scrambled to exit equities and lock up funds in fixed assets.
“Having sustained four days of consecutive loss with negative 6.5 per cent so far this week, we are of the view that the market for the week will most likely close within the negative territory. We advise investors to tread cautiously in taking opportunistic investment positions in trading sessions ahead as likely market drags at the moment outweigh the positive,” analysts at FSDH Securities noted in a post-trade investment report.
Nestle Nigeria topped the losers’ list with a drop of N40.77 to close at N774.78. Seplat Petroleum Development Company followed with a drop of N17.09 to close at N324.83. Forte Oil placed third with a loss of N11.50 to close at N218.50. Nigerian Breweries declined by N8.06 to close at N153.25. Mobil Oil Nigeria lost N7.95 to close at N151.05. Guinness Nigeria dwindled by N6.79 to close at N129.06. Dangote Cement dropped by N5.51 to close at N157.99 while Flour Mills of Nigeria declined by N4.72 to close at N43.73 per share.
– The Nation