- Equities shed N45bn, Lafarge dumps Ernst & Young
Equity transactions on the Nigerian Stock Exchange (NSE) on Tuesday resumed after the independence holiday on a negative trend, with market indicators depreciating marginally by 0.37 per cent.
The News Agency of Nigeria (NAN) reports that the market capitalisation shed N45 billion or 0.37 per cent to close at N12.171 trillion against N12.216 trillion posted on Friday.
Also, the All-Share Index, which opened at 35,439.98 lost 133.89 points or 0.37 per cent to close at 34,306.09.
An analysis of the price movement indicated that Nestle led the losers’ table with a loss of N5.11 to close at N1215 per share.
Nigerian Breweries trailed with N3 to close at N162 and Dangote Cement dipped N2.99 to close at N210, while Forte Oil declined by N1.8 to close at N48.1 per share.
PZ Cussons also lost N1.27 to close at N24.23 per share.
Conversely, Total Oil led the gainers’ table during the day, gaining N4 to close at N235 per share.
Guinness came second with a gain of N3.49 to close at N98.5 and Lafarge Wapco appreciated by N1.34 to close at N52.02 per share.
Zenith Bank increased by 61k to close at N24.01, while Stanbic IBTC added 51k to close at N40.01 per share.
However, the volume of shares increased as investors exchanged 634.33 million shares worth N5.79 billion transacted by investors in 3,850 deals.
This was in contrast with 192.204 million shares worth N3.67 billion exchanged in 2,814 deals on Friday.
NAN reports that FCMB was the most active, exchanging 370.41 million shares valued at N377.99 million.
FBNH followed with an account of 33.99 million shares worth N193.57 million, while GTBank traded 33.48 million shares valued at N1.34 billion.
Zenith Bank sold 26.86 million shares worth N641.09 million and UCAP traded 25.18 million shares valued at N73.29 million.
In the meantime, the equities market, on Tuesday, declined by N45bn, thus opening the week on a bearish note.
Consequently, the Nigerian Stock Exchange All-Share Index shed 0.4 per cent to close at 35,306.1 basis points while the year-to-date return retreated to 31.4 per cent.
Meanwhile, Lafarge Africa Plc, in a letter, informed the NSE of its resolve to drop Ernst & Young (Nigeria) as its external auditors for KPMG. The letter was signed by the cement company’s Company Secretary/Legal Director, Mrs. Edith Onwuchekwa.
The NSE market capitalisation decreased to N12.171tn from N12.216tn.
Tuesday’s performance was pulled by Dangote Cement Plc, Nigerian Breweries Plc and PZ Cussons Nigeria Plc, which declined by 1.4 per cent, 1.8 per cent and 6.8 per cent, respectively.
Ex-Dangote Cement, the market would have gone up by six basis points, according to analysts at Afrinvest Securities.
On the other hand, activity level improved as volume and value traded surged 169 per cent and 51.1 per cent to 634.3 million units and N5.8tn, respectively.
Of the sector indices, three out of five closed positive reflecting a mixed performance across sectors.
The banking index led gainers, up by 0.6 per cent due to gains in Zenith Bank Plc, Union Bank Plc and United Bank Plc, which appreciated by 2.6 per cent, 3.9 per cent and 1.7 per cent, accordingly.
Similarly, buy interest in Lafarge Africa Plc (resulting in a 2.6 per cent gain) pushed the industrial goods index up by 0.3 per cent despite losses in Dangote Cement.
Likewise, the insurance index closed 0.1 per cent higher owing to price appreciation in NEM Insurance (Nigeria) Plc by 4.3 per cent.
On the other hand, the consumer goods index fell by 0.9 per cent as Nigerian Breweries and PZ shares declined. Losses in Forte Oil Plc and Oando Plc by 3.6 per cent and 0.5 per cent, dragged the oil/gas index by 0.3 per cent.
Market sentiment as measured by market breadth softened after 18 stocks advanced against 21 decliners. The best performing stocks were C & I Leasing Plc, Learn Africa Plc and Caverton Offshore Services Group Plc, which gained 9.8 per cent, 6.8 per cent and 4.8 per cent, accordingly.
The worst performers, however, were Unity Bank Plc, PZ and United Capital Plc, which depreciated by five per cent, apiece.
The Afrinvest Securities analysts added, “In the interim, there are no market drivers, but we expect market sentiment to improve as the earnings season begins on Tuesday.”
Additional report from Punch
