Negative sentiment shaves off N77bn from stock market

The two major indicators at the Nigerian stock market yesterday plunged 0.79 per cent to close on the red territory.

The loss was attributed to a decline in investors’ confidence that ran through the session; and which has since become increasingly pervasive after the half year financial reports by some companies listed on the bourse turned out to be unfavuorable to investors’ interest.

In respect of yesterday’s trading, the negative sentiment shaved the off total equities value by N77 billion to close market capitalization at N9.616 trillion and similarly, the NSE All-Share Index, falling by 223.89 basis points to close at 27,997.29 points.

The negative trend on the market, also affected market breadth, turnover and transacted deals as they all followed suit to end the session.

Of the 49 stocks that traded on floor, declining stocks outnumbered advancing ones in the ratio 35 to six, while eight other stocks closed flat as at the ringing of the closing gong.

The Nigerian Breweries Plc topped the gainers’ list with a gain of N1.9 kobo on each shared traded to close at N137 per share while on the other, Nestle Nigeria Plc led 34 other stocks, in the losers’ camp, as its share price depreciated N15 and closed at N835 per share.

As regards market turnover, traded volume and value recorded a decline change of 26.66 per cent and 10.47 per cent respectively.

Investors ended the session trading 227.135 million shares worth N1.808 billion in 3,426 trades as compares with 309.72 million shares valued at N2.084 billion that exchanged hands in 3,934 deals on Wednesday.

Meanwhile, some analysts have concluded by saying that the market can only anticipate overall bearish performance for the week following the N24 billion loss on Monday, N85 billion and N91 billion on Tuesday and Wednesday respectively; and the recent lackluster half-year (H1) earnings releases.