NSE: Investors net worth drops by N581bn in November

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…As NSE index appreciates further by 0.79% over Bargain hunting***

Investors net worth on the Nigerian Stock Exchange (NSE) dropped by N581 billion in November, amid sell pressure ahead of the 2019 general elections and Yuletide celebrations.
Data obtained by the News Agency of Nigeria (NAN) from the exchange showed that the market capitalisation shed N581 billion or 4.90 per cent to close at N11.271 trillion against N11.852 trillion achieved in October.

Also, the All-Share Index which opened at 32,466.27 shed 1,592.1 points to close at 30,874.17 due to huge losses posted during the period.
A breakdown of the price activity chart during the review period showed that Diamond emerged worst performing stock in percentage terms, dropping by 53.24 per cent to close at 65k against N1.39 opening price.

NAN reports that Eterna Oil came second having dropped by 30.58 per cent to close at N4.20, while Cement Company of Northern Nigeria shed 27.86 per cent to close at N18 per share.
Other top losers’ were Ikeja Hotel, Lafarge Africa, Niger Insurance , C & I Leasing, Union Diagnostic, NEM Insurance and AG Leventis.

Conversely, Continental Reinsurance emerged the best performing stock in percentage terms, growing by 35.14 per cent to close at N2 per share on the strength of its expansion drive and improvement in earnings.

It was trailed by GSK with 17.89 per cent to close at N14.50, while MC Nicholas inched 14.68 per cent to close at 47k per share.
Other top gainers were May & Baker, CAP, Beta Glass, NAHCO, Nestle, Presco and AXA Mansard Insurance.

Commenting on the performance of the market during the period, Mr Sola Oni, a chartered stockbroker and Chief Executive Officer, Sofunix Investment and Communications, attributed the continuous slide to a combination of factors.

Oni said many investors were apprehensive of the likely breakdown of law and order during general election in February next year.
He said the fear was prompted by unguarded comments of the political class, adding that many investors wanted to reduce their losses by selling off now.

Oni added that some investors were also dumping their shares to prepare for Christmas celebrations and payment of school fees in the New Year.
“The stock market is a reflection of the economy and indeed a barometer that gauges economic mood.

“The bearish trend signals that all is not well with Nigeria’s economy. However, the market operates in cycles and the fact that a company’s share price drops does not necessarily mean that it has gone under.
“It only lost the value of some shares and can bounce back once there is positive information.

“This is a good time to buy shares as prices of many blue chip companies are trading below intrinsic values and they have strong potential to bounce back,” he said.

Mr Moses Igbrude, Publicity Secretary, Independent Shareholders Association of Nigeria, said the downward trend was due to the upcoming elections.
Igbrude said many foreign investors had moved away from the market because of the instability in the system.

“Virtually all the companies listed on the exchange today are undervalued.
“My advice to Nigerians who have the resources is to invest now that the market is down pending when elections are over Nigeria will remain no matter what happens,” he said.

Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd. , attributed Diamond Bank’s loss to the lingering crisis and reactions to its rumoured acquisition which was denied by the bank.
Omordion said the crisis of confidence was triggered by the way it’s Chairman, Mr Oluseyi Bickersteth, resigned along with three other non-exclusive directors.

He added that weak earnings power that led to non-payment of dividends for some time now and high non-performing loans contributed to the drop of the bank’s share during the period.
Omordion, however, said the bank’s acquisition of national banking licence would propel the turnaround of its fortunes.

Meanwhile, Bargain hunting persisted on the Nigerian Stock Exchange (NSE) on Wednesday with the All-Share Index appreciating further by 0.79 per cent.

The News Agency of Nigeria (NAN) reports that the index grew by 244.43 points or 0.79 per cent to close at 31,251.68 compared with 31,007.25 achieved on Tuesday.

Also, the market capitalisation inched N52 billion to close at N11.372 trillion against N11.320 trillion recorded on Tuesday.

The upturn was impacted by gains recorded in medium and large capitalised stocks with Dangote Cement leading the gainers’ pack with N5 to close at N190 per share.

It was followed by Stanbic IBTC with 95k to close at N47.50, while Flour Mills rose by 65k to close at N21 per share.

PZ Cussons increased by 60k to close at N10.90, while Oando garnered 25k to close at N4.95 per share.

Analysts at InvestData Ltd., said: “The rebound in the market was in line with our expectation; although, we expect this to be short-lived, as sell pressures persist.”

They said that the market would continue to experience mixed performance until after the 2019 general elections.

On the other hand, Seplat recorded the highest loss, dropping by N15.10 to close at N598.90 per share.

Cement Company of Northern Nigeria trailed with a loss of N1.75 to close at N16. 25, while International Breweries shed N1.30 to close at N29.45 per share.

Guaranty Trust Bank was down by 65k to close at N35.30, UACN declined by 50k to close at N9.50 per share.

NAN reports that a total of 198.64 million shares valued at N2.31 billion was exchanged by investors in 2,845 deals.

This was in contrast with a total of 198.54 million shares worth N2.12 billion transacted in 2,802 deals on Tuesday.

FBN Holdings was the most active stock, exchanging 90.36 million shares worth N689.82 million.

Access Bank followed with an account of 17.95 million shares valued at N134.56 million, while Diamond Bank traded 15.09 million shares worth N12.82 million.

FCMB Group exchanged 12.02 million shares valued at N18.47 million, while Guaranty Trust Bank accounted for 7.59 million shares worth N268.05 million.