Bearish hold force market index down by N32 billion

FOLLOWING price losses recorded by most bluechip companies, equity transactions reopened on a bearish note yesterday, causing market capitalisation to plummet by N32 billion.

Specifically, at the reopening of transaction for the week on Monday , the All Share Index (ASI) was down by 88.90 absolute points, representing a dip of 0.27 per cent to close at 32,451.27 points. Similarly, the market capitalisation decreased by N32 billion to close at N11.847 trillion.

The decline was impacted by losses recorded in medium and large capitalised stocks, amongst which are; Nigerian Breweries, Okomu Oil, Union Bank of Nigeria (UBN), Forte Oil, and Oando.

Analysts at APT Securities and Funds Limited, said: “there is no doubt that political risks in the economy may most likely linger till the 2019 election. We therefore advice investors to tread with caution in the short run as the market shuffles in between sell-offs and mild bargain hunting.

“Our outlook for equities in the short to medium term remains conservative, amidst brewing political concerns, and the absence of a one-off positive trigger. However, stable macroeconomic fundamentals remain supportive of recovery in the long term.”

Market breadth closed negative, with 13 gainers versus 23 losers. Niger Insurance recorded the highest price gain of 9.68 per cent to close at 34 kobo per share. Lasaco Assurance gained 6.45 per cent to close at 33 kobo, while Unilever Nigeria appreciated by 4.65 per cent to close at N45 per share.

Honeywell Flour appreciated by 4.29 per cent to close at N1.46, while Sovereign Trust Insurance gained 4.17 per cent to close at 25 kobo per share.

On the other hand, Livestock led the losers’ chart by 9.52 per cent to close at 57 kobo per share. Union Bank of Nigeria (UBN) followed with a decline of 9.48 per cent to close at N5.25, while Law Union & Rock Insurance depreciated by 9.09 per cent to close at 60 kobo per share.

Okomu Oil declined by 8.96 per cent to close at N70.10, and Royal Exchange shed 8.33 per cent to close at 22 kobo per share.