16 November 2016, Lagos – Persistent weak investors’ sentiments kept the stock market in red zone for the second consecutive day with the Nigerian Stock Exchange (NSE) All-Share Index (ASI) shed 0.50 per cent to close at 25,857.06 yesterday.
Similarly, market capitalisation shed N44.7 billion to close lower at N8.9 trillion. Sell pressure on large cap stocks like Dangote Cement Plc and Zenith Bank Plc among others dragged the market to close weaker.
Market analysts attributed the negative trading to sell pressure by investors who are exiting the market to prepare for end-of-year spending. At the close of trading 19 stocks lost value compared with nine equities that appreciated.
Lafarge Africa Plc recorded the highest loss with 8.3 per cent to close at N44.00, trailed by Conoil Plc which shed N4.9 per cent to close at N34.11 per share. Oando Plc and Transcorp Plc went down 4.8 per cent apiece.
On the positive side, Custodian and Allied Plc led with 4.96 per cent to close at N3.81, followed by Airline Services and Logistics Plc with 4.93 per cent appreciation. NAHCO Plc and NASCON Allied Industries Plc rose by 4.8 apiece, just as Guaranty Trust Bank Plc garnered 4.2 per cent. Mobil Oil Nigeria Plc and Access Bank Plc closed 2.6 per cent each.
Analysts at Meristem Securities Limited said in spite of the price recovery witnessed by some large-cap tickers, the equities market was awash with weak sentiments which were further pressed by the price depreciation on Dangote Cement.
“We expect the rest of the week to be swayed by mixed investor sentiment, possibly skewed more towards bargain-hunting,” they said.
In terms of sectoral performance, two indices gained while three declined. The NSE Banking Index went up 1.3 p cent on the back of gains in GTBank Plc and Access Bank Plc. Similarly, the NSE Consumer Goods Index rose 0.02 per cent following gains by Dangote Sugar Refinery Plc (+0.8%) and Nigerian Breweries Plc (+0.2 per cent).
Conversely, the NSE Industrial Goods Index led the sector decliners, down 4.1 per cent on account of losses recorded by Dangote Cement Plc (-1.5 per cent) and Lafarge Africa (-8.3 per cent) while the Insurance Index lost 1.0 per cent.
- This Day