Volume of Trading at Stock Market Rises 36 amidst Bearish Trend

The volume of trading at the stock market rose by 35.9 per cent despite amid the rampaging bears, which drove the year-to-date (YTD) decline to 5.3 per cent yesterday.

Investors traded 207.18 million shares worth N1.58 billion in 2,791 deals, up from 152.391 million shares valued at N903.531 million executed in 2,706 deals the previous day. However, the bearish trend persisted with the Nigerian Stock Exchange (NSE) All-Share Index sliding by 0.55 per cent to close at 25,446.66 as the bourse remained under pressure of heavy selloff in consumer goods sector. Similarly, market capitalisation went down by the same margin of 0.55 per cent to close at N8.769.80 trillion.

A closer look at the performance indicated that the decline resulted from depreciation in the share prices of bellwethers such as Nigerian Breweries Plc, Forte Oil Plc, Nestle Nigeria and Guinness Nigeria Plc.

Analysts at SCM Capital Research said: “We expect the current bearish mood to prevail, given the lack of catalyst to spur activities to the upside.

The scenario may, however, reverse if some positive results are released.”

In all, 22 stocks depreciated led by Forte Oil Plc with 6.4 per cent, trailed by Nestle, which shed 5.0 per cent.

PZ Cussons Nigeria Plc, International Breweries Plc and NASCON Allied Industries Plc lost 4.9 per cent apiece, while UACN Property Development Company Plc and FBN Holdings Plc shed 4.8 per cent each among others.

On the positive side, 14 stocks appreciated with Beta Glass Plc and Caverton gaining 5.0 per cent each to lead the price gainers.

Presco Plc and Pharma Deko Plc and AXA Mansard Insurance Plc garnered 4.8 per cent each. In terms of sectoral performance, the NSE Insurance and Industrial Goods indices appreciated while others declined.

The insurance sector gauge apprecied by 0.8 per cent following gains recorded by AXA Mansard, while 0.6 per cent appreciation posted by Dangote Cement lifted the Industrial Goods indicator.