Sell- off persists as capitalisation dips further by N92b

SELL- OFFS persisted on the equity sector of the Nigerian Stock Exchange ( NSE) as blue- chip stocks continue to depreciate, resulting in further slide in market capitalisation by N92 billion. At the close of trading yesterday, the All- Share Index ( ASI) fell by 175.56 points or 0.44 per cent to close at 39,522.06 points. Accordingly, investors lost N92 billion in value as market capitalisation declined to N20.678 trillion. The downturn was impacted by losses recorded in medium and large capitalised stocks, including MTN Nigeria, Lafarge Africa, International Breweries, Dangote Sugar Refinery and Oando.

Analysts at Afrinvest Limited said: “We expect the sell- off to continue due to increasing rates in the fixed income market. However, the current prices of stocks make an attractive case for dividend yields.”

Vetiva Dealing and Brokerage firm said: “Void of any positive event capable of lifting investors’ confidence, the bears continued to dominate the domestic bourse amidst persistent sell pressure on major bellwether stocks. Given the negative market breadth, as well as the unimpressive sectoral performances, we expect the bearish tone to filter into tomorrow’s session.”

Market sentiment, as measured by market breadth, was negative as 30 stocks lost, relative to 16 gainers. Seplat

Petroleum Development Company ( SEPLAT) recorded the highest price gain of 10 per cent to close at N583.

AIICO Insurance followed with a gain of 5.22 per cent to close at N1.21, while Cornerstone Insurance gained 5.17 per cent to close at 61 kobo.

UACN Property Development Company went up by five per cent to close at 84 kobo while Cutix appreciated by 4.21 per cent to close at N2.23 kobo.

On the other hand, Japaul Gold and Ventures led the losers’ chart by 10 per cent to close at 54 kobo. NEM Insurance followed with a decline of 9.91 per cent to close at N1.91 while Champion Breweries lost 9.76 per cent to close at N1.85 kobo.