By Omobayo Azeez
Nigeria’s equities market sustained its downward trend on the opening day of trading for the new week on the Nigerian Stock Exchange (NSE) with shares shedding N58 billion on low investor confidence.
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Analysts said the market has remained low on confidence due to lack of policy pronouncements by the authorities or any stimulants strong enough to trigger positive sentiments.
As investors commenced another week on a negative note on Monday, the All Share Index (ASI) plunged by 0.45 per cent, losing 121.04 points to close at 26,866.41 bps, while the N58 billion shaved off market capitalisation led it to close the day at N13.079 trillion from N13.137 trillion that it had closed on Friday.
Market breadth closed negative as UACN led 16 gainers as against 17 losers topped by SEPLAT at the end of today’s session, an improved performance when compared Friday’s position.
Market turnover closed positive as volume moved up by +9.24 per cent as against -8.15 per cent downtick recorded in the previous session. FCMB, TRANSCORP and FBNH were the most active stocks and helped to boost market turnover, while NESTLE and DANGCEM topped market value list.
UACN gained N0.55 to close at N7.10; CCNN appreciated by N0.40 to close at N15.20 while AFRIPRUD, NASCON and CONOIL appreciated by N0.35, N0.30 and N0.15 to close at N3.87, N13.50 and N15.40 per share respectively.
Conversely, SEPLAT led decliners with N38 loss to close at N517, NESTLE trailed with a loss of N25.50 to close N1,230 and Stanbic closed at N37.05 after losing N0.95 per cent.
Also, SEPLAT and Nigerian breweries shed N0.60 and N0.35 to close at N9.85 and N50 per share respectively.
Analysts at Afrinvest said “the bearish sentiment in the market is expected to continue as there are no major catalysts to boost investor confidence, although we see opportunities for bargain hunting.
They said at the close of market activities last week in line with recent trend, the Negative Directional Movement Index (-DMI) still outstrips the Positive Directional Movement Index (+DMI) and continues to display a super-strong ADX (Average Directional Movement Index), indicating the NSEASI’s reluctance to rise to glory.
“This week, we expect the index to continue to wander within the negative territory. But why are we pessimistic? All indicators strongly suggest there are no possible triggers to herald a rebound in the near term.”