Following declines in the value of shares of Nestle Nigeria, Guaranty Trust Bank, Zenith Bank and other highly capitalized stocks, the trading activity on the floor of the Nigeria Stock Exchange (NSE) on Monday closed in red to start the week.
The bearishness recorded at the market was as a result of persisted sell pressures on the local bourse, dragging the key performance indicator of the NSE, the All-Share Index (ASI), down by 1.25 percent to close at 34,037.91 points, and plunging the year-to-date loss of the ASI to -12.16 percent.
After the close of business, equities investors lost a total of N155.60 billion in value as market capitalization of all listed stocks, which opened at N12.27 trillion, dropped to N12.43 trillion.
Consequently, the total volume and value of transactions dipped by 11.75 percent and 35.53 percent from 155.95 million shares and N2.1 billion to 137.63 million shares and N1.36 billion, respectively.
Performance across sectors was also bearish, as indices of all major sectors headed to the south. The NSE Consumer Goods index led the sector decliners, falling by 3.69 percent as investors sold off Nestle Nigeria, which dropped by 9.7 percent, and Nigerian Breweries shedding 0.4 percent.
NSE Insurance index trailed with 2.09 percent depreciation on the back of sell-offs in NEM Insurance and Continental Reinsurance, while NSE Banking index dropped by 1.25 percent, driven by sell pressures in Guaranty Trust Bank, Zenith Bank and Access Bank, which fell by 1.4 percent, 1.9 percent and 1.7 percent, respectively.
Similarly, Forte Oil, which shed 9.3 percent, pulled the NSE Oil & Gas index down by 0.52 percent, while NSE Industrial Goods index closed flat amid profit taking activity on Cutix, dropping 0.25 percent of its share value.
Nestle Nigeria led the laggards chart, depreciating by 9.67 percent to close at N1,355 per share. Global Spectrum Energy Services followed by shedding 9.45 percent to close N5.75 per share, while Forte Oil dropped 9.29 percent to close at N19.05 per share.
Regency Alliance Insurance Company lost 8.70 percent to close at 21 Kobo per share, while Japaul Oil fell by 7.69 percent to close at 24 Kobo per share.
On the flip side, Sunu Assurances Nigeria emerged the top gainer with10 percent to close at 22 Kobo per share. Union Diagnostic & Clinical Services trailed by gaining 7.41 percent to close at 29 kobo, while Honeywell Flour garnered 5.56 percent to close at N1.52 per share.
University Press gained 4.17 percent to close at N2 per share, while Mutual Benefits Assurance rose by 3.70 percent to close at 28 Kobo per share.
Guaranty Trust Bank was the most traded stock in value after recording 29 percent of the total investment turnover, reaching 11.25 million volumes of shares valued at N390.94 million.
Nigerian Breweries, which accounted for 26 percent of the total return, traded a total volume of 2.36 million worth N218.80 million, while Zenith Bank sold 6.64 million volume of shares at N136.60 million.
United Bank for Africa traded 16.66 million shares valued at N130.87 million, while Nestle Nigeria transacted 87,930 shares worth N119.77 million.
Analysts at Afrinvest Securities said the market performance reflects investors’ bearish outlook on the market as political risks remain heightened and in addition to continued absence of positive drivers.
In spite of the negative performance, the analysts remained optimistic that some bargain hunting would drive performance in the near term.