The Nigeria equities market Monday was off to an ugly start in the week shedding 0.45 percent just as global stocks saw red.
The Nigerian benchmark index, NSEASI shed closed at 44,261.72 points while year-to-date (YTD) return moderated to 15.7 percent. Accordingly, market capitalization fell by N71.2 billion to settle at N15.8 trillion.
The day’s negative performance was largely due to losses in DANGCEM (-2.9%), UBA (-3.1%) and FBNH (-1.8%). On a similar note, activity level softened as volume and value traded fell 32.3 percent and 19.6 percent to 426.8 million units and N2.8 billion respectively.
Sector performance was mixed as three of five indices closed in the red while two trended northwards. The industrial goods index was the top loser, down 1.3 percent primarily on the back of price depreciation in DANGCEM (-2.9%).
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The oil & gas index (-1.3%) was dragged following losses in FORTE (-4.9%). Similarly, profit taking in NASCON (-2.3%) and DANGFLOUR (-1.2%) pulled the Consumer Goods index 0.7 percent southwards.
On the flip side, the Insurance index was the top gainer, up 1.6 percent as buy interest in AIICO (+10.0%), AFRIPRUD (+4.0%) and LINKASSURE (+5.9%) buoyed performance. Also, the banking index closed the day positive, up 1.4 percent as investors took position in ZENITH (+2.2%) and GUARANTY (+0.6%).
Investor sentiment as measured by market breadth (advance/decline ratio) stood at 0.6x as 22 stocks advanced against 34 decliners. Today’s top performers were AIICO (+10.0%), PRESTIGE (+8.3%) and LINKASSURE (+5.9%) while UNIC (-8.7%), HMARKINS (-8.3%) and SKYE (-5.6%) were the worst performers.
In the NASD OTC Exchange, total volume and value traded stood at 115,612 units and N1.7m respectively. The SDCSCSPLC, SDMASSTCOM and SDFCWAMCO were the only instruments that traded today.
Despite the negative performance, analysts at Afrinvest say their near-term outlook on performance remains positive as investors continue to seek for bargain opportunities in anticipation of full year earnings releases.
On the day, global stock markets plunged into negative territory. Major indexes in Asia and Europe were in the red on Monday. The losses follow the 2.5% drop in the Dow on Friday, its biggest percentage decline since the Brexit turmoil in June 2016.
“Panic sentiment is spreading globally,” said Margaret Yang Yan, an analyst at CMC Markets in Singapore.
Other major markets in retreat included Hong Kong’s Hang Seng index, which sank 1.1%. European markets, which posted significant losses on Friday, were off by over 1% in early trading.