Profit taking: NSE opens trading, shedding off N28Bn

Investors in Equities market forfeit N21bn as GlaxoSmithKline leads losers' chart
Written by Maritime First

…As GM says Shell loses N202m daily to vandals, oil thieves***

The Nigerian Stock Exchange (NSE) reopened for the week on Monday still on a bearish trend, amid persistent sell pressure, with the All-Share Index dipping 56.73 points, representing a decline of N28 billion or, 0.21 per cent to close at 27,089.84 against 27,146.57 posted on Friday.

Market capitalisation sheds N28 billion or 0.21per cent and closed at N13.179 trillion, compared to N13.206 trillion on Friday.

The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are; Nestle Nigeria, Stanbic IBTC Holdings, Dangote Sugar Refinery, Oando and Cutix.

Analysts at Afrinvest Limited said that, “In line with the trend, we expect the bearish performance to continue in the absence of any positive driver.

They said they did not rule out the possibility of some bargain-hunting, driving positive performance in subsequent sessions, never the less.

However, market breadth closed slightly on the positive side with 15 gainers versus 14 losers.

A breakdown of the price movement chart indicates that Livestock Feeds led the losers’ chart with 7.14 per cent to close at 39 kobo, per share.

Lasaco Assurance followed with a loss of 6.90 per cent to close at 27k, while Cutix lost 6.67 per cent to close at N1.40 per share.

NPF Micro Finance Bank depreciated by 6.45 per cent to close at N1.16, while Nestle Nigeria dipped by 5.73 per cent to close at N1,136, per share.

Conversely, UACN and UAC Property Development Company recorded the highest price gain of 9.09 per cent each, to close at N6.60 and N1.08 per share respectively.

John Holt followed, gaining 8.93 per cent to close at 61k per share.

Seplat rose by 7.12 per cent to close at N426, while FBN Holdings appreciated by 6.90 per cent to close at N4.65 per share.

Similarly, total volume traded depreciated by 6.7 per cent with an exchange of 290.49 million shares worth N4.29 billion traded in 2,900 deals.

This was in contrast with a total of 311.26 million shares, valued at N6.44 billion transacted in 3,192 deals on Friday.

Transactions in the shares of Guaranty Trust Bank topped the activity chart with a turnover of 128.49 million shares worth N3.38 billion.

FBN Holdings followed with 41.84 million shares valued at N183.53 million, while Transcorp traded 32.85 million shares worth N32.9 million.

Access Bank sold 23.88 million shares valued at N162.67 million, while UACN accounted for 10.61 million shares worth N69.74 million.

Also read:  Persistent profit taking: NSE market capitalisation loses N51bn

In the meantime, the Shell Petroleum Development Company of Nigeria (SPDC) Joint Venture says it loses about N202 million daily in revenue to activities of criminals in the Niger Delta, attributing the loss to daily attacks on its pipelines by suspected crude oil thieves and vandals.

SPDC’s General Manager, External Relations, Igo Weli who indicated this during a media workshop on Pipelines Right of Way, Encroachment and Vandalism in Port Harcourt, noted that the huge figure is even a reduction of what it used to be.

“SPDC JV is currently losing about 10,000 barrels per day (bpd) of oil or N202 million lost daily from its pipelines to crude oil thieves in the Niger Delta.

“This is a reduction from the loss of around 11,000 bpd in 2018 and about 9,000 bpd of oil lost daily in 2017.

“These attacks were on critical assets that produce the crude oil, which accounts for over 90 per cent of Nigeria’s foreign exchange earnings and the bulk of government revenue”, Weli said, highlighting that the company had so far discovered and removed, more than 1,160 illegal theft-points on its pipelines since 2012.

He further said that its pipelines were breached by vandals 111 times in 2018 alone resulting to oil spills in the Niger Delta.

“We are concerned about the lives and safety of those involved in pipeline vandalism and crude oil theft as well as the environment.

“SPDC puts safety first and have constantly made appeals to those involved to stop destroying their lands and heritage from the spills and pollution arising from their activities.

“We are calling on government, communities and other stakeholders to stem the incessant attack on our oil assets in the Niger Delta,” he appealed.

The general manager said that such illicit activities by criminals had denied the company and country the needed revenue to drive business and development.

He said that despite the attacks on its facilities, the company had spent billions to fund projects in the communities it operates.

According to him, the Niger Delta is the most blessed region in the country going by the huge revenue allocated to the region by government and companies.

“There is a community in the Niger Delta that has received over N2 billion from SPDC JV for its development, but is yet to develop.

“The region receives 13 per cent derivation, revenue from NDDC and funds from companies, but still has not developed.

“The Niger Delta has refused to develop despite the huge monies allocated to the area. So, we need to ask ourselves the critical questions to change the Niger Delta narratives,” he said.


About the author

Maritime First