Economy

Nigeria bourse drops further by N20bn, amid insecurity concerns

NSE: Domestic transactions dropped by 66.68% in 12 years
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Written by Maritime First

… As CBN ritually Inject $210m into Forex market***

Transactions on the Nigeria bourse on Tuesday again closed on the negative side, shedding off N20 billion, extending bearish sentiment for the second day running and leaving analysts dumbfounded, as to whether to blame ‘profit-taking’ urge or the rising wave of insecurity.

The market capitalisation shed N20 billion, sliding to N13.158 trillion against N13.178 trillion achieved on Monday; even as the All Share Index (ASI) dipped 42.26 points or 0.16 per cent to close at 27,047.58, compared with 27,089.84 posted on Monday.

The downturn was impacted by losses recorded in medium and large capitalised stocks, among which are Nestle Nigeria, Cement Company of Northern Nigeria (CCNN), Dangote Cement, Forte Oil and UAC of Nigeria (UACN).

The Chief Operating Officer, InvestData Ltd., Mr. Ambrose Omordion attributed the decline to persistent sell pressure, caused by investors concerns over the socio-political and economic situation in the country.

Omordion also attributed the development to issues relating to heightening insecurity in the country.

“We expect this trend to continue as bargain hunters take advantage of low valuation to trigger buying interest once the direction is given through economic policies,” he said.

However, market breadth closed positive, with 18 gainers compared with 12 losers.

Thomas Wyatt Nigeria led the losers’ chart by 9.52 per cent, to close at 38k per share.

Continental Reinsurance followed with a decline of 7.36 per cent to close at N1.51, while CCNN lost 6.61 to close at N16.25 per share.

University Press dipped 6.25 per cent to close at N1.05, while UACN shed 6.06 per cent to close at N6.20 per share.

Conversely, UACN Property Development Company recorded the highest price gain of 9.26 per cent, to close at N1.18, per share.

FBN Holdings followed with a gain 7.53 per cent to close at N5, while Dangote Flour Mills appreciated by 5.95 per cent to close at N22.25 per share.

Wapic Insurance appreciated by 5.41 per cent to close at 39k, while Courteville Business Solution appreciated by 4.76 per cent to close at 22k per share.

In spite of the drop in market indices, the total volume of shares traded rose by 25.38 per cent with an account of 364.22 million shares worth N4.86 billion traded in 4,629 deals.

This was in contrast to a total of 290.49 million shares, valued at N4.29 billion achieved in 2,900 deals on Monday.

Transactions in the shares of Guaranty Trust Bank topped the activity chart with 78.64 million shares valued at N2.115 billion.

Courteville Business Solution followed with an exchange of 49.02 million shares worth N10.70 million, while Access Bank traded 43.88 million shares, valued at N301.92 million.

Zenith Bank sold 40.3 million shares worth N732.93 million, while FBN Holdings transacted 36.51 million shares valued at N179.85 million

In the meantime, the Central Bank of Nigeria (CBN) has injected 210 million U.S. dollars into interbank segment of the Foreign Exchange Market following sales concluded on Tuesday, to stabilize and keep the Naira exchanging at N357 for a dollar at the Bureau De Change (BDC) segment of the market on Tuesday.

READ MORE…Profit taking: NSE opens trading, shedding off N28Bn

The bank’s Director, Corporate Communications Department, Mr Isaac Okorafor, made this known in a statement in Abuja on Tuesday.

Okorafor explained that the figures released by the CBN indicated that authorised dealers in the wholesale segment of the market were offered 100 million dollars while the Small and Medium Enterprises (SMEs) segment received 55 million dollars.

He said that another 55 million dollars was allocated to customers requiring foreign exchange for invisibles such as tuition fees, medical payments and Basic Travel Allowance (BTA), among others.

The director reaffirmed the bank’s commitment towards ensuring stability in foreign exchange market.

The CBN had on Friday, Sept. 6, injected 321.11 million U.S. dollars and CNY33.3 million into the Retail Secondary Market Intervention Sales (SMIS) segment.

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Maritime First