Investors’ sentiment drags market down by N10bn

The equities market resumed its downward trajectory on Thursday following Wednesday’s positive close that ended eight consecutive losing sessions as the  market capitalization declined at the end of the day transactions by N10 billion

Market capitalisation dropped by 0.1 per cent to N8.77 trillion from N8.78 trillion with which it opened.

Similarly, the declines in Total Nigeria and Zenith Bank Plc cancelled out the gains in Guaranty Trust Bank Plc as the market lost 0.10 per cent to close at 25,490.70 basis points from 25,517.00 basis points it opened today

Furthermore, while the NSE Banking index appreciated by 0.15 per cent, the NSE Oil & Gas and NSE Consumer Goods sectors shed 1.40 per cent and 0.13per cent respectively. The NSE Industrial index was flat at 1,572.95 basis points.

Despite today’s negative close, market breadth index remained positive as 16 stocks gained, led by Afriprud which gained 4.89 per cent, against 13 stocks that declined.

Air service dropped by 9.49 per cent to become the worst market’s performer.

Although, the total volume of shares traded fell by 41per cent, total value was relative flat against yesterday as investors exchanged 97million units of shares worth N1.14billion in 1,929 deals.

Intbrew that dropped by 4.10 per cent was the most actively traded stock with 22million units of shares accounting for 23per cent of total volume.

Capital market analysts expect the downward trend in the index to persist, given the fragile macro-economic environment and lack of positive catalyst.  They further advised that investors should look beyond the current dim macro situation and take position in quality names for a medium to long term horizon.”

On the foreign exchange market, the Central Bank of Nigeria (CBN) continued its daily intervention at the interbank market, the local currency closed flat against the Dollar at N305. However, it gained 1.07 per cent and 1.00per cent against the Pound and Euro to close at N388.28 and N329.18 respectively.

In the parallel market, while the Naira remained flat against the Dollar at N470 and the Euro at N500, it lost 0.88per cent against the Pound to close at N570.