Stocks on losing spree, hit one-month low
Trading on the floor of the Nigerian Stock Exchange extended losses into the sixth consecutive session as sustained profit taking by investors dragged the market further to a one-month low stance.
The NSE All-Share Index sank 0.9 per cent lower to close at 42,737.89 from 43,127.92 basis points while the year-to-date return shrank to 11.8 per cent.
Investors worth, thus, slumped by N139.6bn as the NSE market capitalisation settled at N15.337tn from N15.476tn.
Market performance was dragged by sell pressure across board and Guaranty Trust Bank Plc, Zenith Bank Plc and Nigerian Breweries Plc were the major causes as their shares depreciated respectively by five per cent, 4.9 per cent and 2.9 per cent.
However, activity level was mixed as volume traded fell by 6.3 per cent to 517.437 million units while value traded appreciated by 15.4 per cent to N5.185bn, respectively.
The stock market, hit by a global risk-off sentiment, and the current ASI stood at a level last seen in January.
Investors have been closing local positions on concern that rising global inflation would lead to higher interest rates in developed economies and draw capital away from emerging markets.
Though the benchmark index has slipped from its January highs, it is still up by 12.8 per cent so far this year.
Sector performance was negative as all indices declined. The banking index declined the most, shedding 3.8 per cent following losses in GTBank and Zenith Bank. The insurance index followed, falling by 1.1 per cent due to price depreciations in Equity Assurance Plc and AIICO Insurance Plc, which fell by 8.3 per cent and 8.2 per cent, accordingly.
The consumer goods index depreciated by 0.9 per cent due to price drops in Nigerian Breweries Plc and Dangote Sugar Plc, which declined respectively by 2.9 per cent and 4.8 per cent, accordingly.
In the same vein, the industrial goods and oil/gas indices slid by 0.4 per cent and 0.2 per cent due to losses in Lafarge Africa Plc and Eterna Plc by 3.9 per cent and 9.7 per vcent, respectively.
Market breadth improved slightly compared to last Friday owing to advancement in 13 stocks against 36 stocks that declined.
The best performing stocks were PZ Cussons Nigeria Plc, Beta Glass Plc and GlaxosmithKline Nigeria Plc, which appreciated by 5.8 per cent, five per cent and five per cent, accordingly while the worst performing stocks were Eterna Plc, Equity Assurance Plc and Aiico Insurance Plc, which plummeted respectively by 9.7 per cent, 8.3 per cent and 8.2 per cent.
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