NSE: Market capitalisation slides by 0.51%, Investors forfeit N69bn

NSE: Investors garnered N9bn as Trading resumes after Eid-el-Fitr
Written by Maritime First

…As DMO says FG’s savings bond records,N13.5bn investment, with Lagos, FCT, Oyo and Ogun contributing 76%***

Activities on the Nigerian Stock Exchange (NSE) returned to bearish mood on Tuesday, following sell pressure in blue chips which culminated in market capitalization, to drop by 0.51 per cent or N69 billion.

Specifically, the market capitalisation, which opened at N13.483 trillion lost N69 billion following loses by Betaglass, Dangote Cement and Forte Oil.

Also, the All-Share Index dipped 141.98 points or 0.51 per cent to close at 27,527.40 compared with trillion 27,669.38 achieved on Monday.

Analysts at Afrinvest Limited said, “We maintain our bearish outlook for the equities market in the absence of policy levers to strengthen investors’ appetite.”

Consequently, the market breadth closed negative, with six gainers against 23 losers.

Betaglass topped the laggards’ table with a loss of N6.60 to close at N59.75 per share.

Dangote Cement, one of the mostly capitalised stocks, came second with a loss of N2 to close at N168, while Forte Oil dipped N1.15 to close at N18.30 per share.

Cadbury dropped N1.10 to close at N10.30, while Dangote Flour was down by 35k to close at N20 per share.

Conversely, Cement Company of Northern Nigeria led the gainers’ table, growing by 45k to close at N13.45 per share.

Lafarge Africa followed with a gain of 20k to close at N14.50, while May and Baker Nigeria garnered 10k to close at N2.40 per share.

Access Bank also appreciated by 10k to close at N6.20, while United Capital improved by 8k to close at N2.14 per share.

Also read: NSE crucial market indices resume trading with 0.14%

In the same vein, the volume of shares transacted dropped by 39.18 per cent as investors bought and sold 170.72 million shares worth N2 in 3,614 deals.

This was in contrast with a turnover of 280.69 million shares valued at N1.41 billion exchanged in 3,314 deals on Monday.

Access Bank Plc was the most active stock during the day, exchanging 65.13 million shares worth N409.15 million.

Guaranty Trust Bank Plc followed with an account of 17.62 million shares valued at N488.82 million, while Dangote Flour Mill traded 16.16 million shares worth N324.55 million.

Zenith Bank traded 10.94 million shares valued at N197.42 million, while United Bank for Africa sold a total of 7.58 million shares valued at N45.16 million.

In the meantime, the Debt Management Office (DMO) indicated Tuesday that the Federal Government’s savings bonds recorded N13.5 billion worth of investment since inception in March, 2017.

Mr Monday Usiade, Head, Market Development, DMO, stated this at the Retail Bond Workshop organised by DMO in partnership with the Nigerian Stock Exchange (NSE) and Stanbic IBTC Stockbrokers Limited in Lagos.

A breakdown of the data indicated that N2.07 billion, N2.69 billion, N1.55 billion and N891 million worth of investments were recorded in the first, second, third and fourth quarters of 2017, respectively.

Similarly, N583 million was recorded in Q1, N740 million in Q2, N1.21 billion in Q3 and N1.02 billion in Q4 of 2018, respectively.

Usiade said a breakdown of the transactions showed that 432 corporate investors invested a total of N1.75 billion, while 15,822 individuals accounted for N11.75 billion, bringing the total investment to N13.5 billion.

Usiade, represented by Ms Bose Olafisoye from DMO Market Development, said individual investors accounted for 87.06 per cent of the total investment.

He said 87.06 per cent was still below expectation, noting that DMO would embrace strategies aimed at attracting more investors to increase the figure.

Usiade noted that 77 per cent of the individual investors were from the South-West.

He added that further breakdown of the geographical distribution of investors showed that eight per cent of investors were from the Federal Capital Territory and South-South, respectively.

According to him, four per cent of the investors came from South-East and outside the country, and three per cent from North-East and North Central.

Usiade added that Jigawa and Yobe states recorded zero subscriptions, while Lagos, FCT, Oyo and Ogun contributed 75.54 per cent of the total investment.

“Eleven Distribution Agents (DAs) have not remitted any amount to the DMO from inception.

“Such DAs that are yet to submit subscriptions in all the auctions as well as other DAs with marginal returns till the end of the year may be de-registered.

“Given the analysis of the performance of the DAs, there is need for them to improve on their performance in order to meet stated objectives,” he said,

Usiade said though modest progress had been made, the FGN savings bonds were far from achieving the stated objectives.



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Maritime First