Nigerian bourse opens the week negative, down by 0.22% Monday    

The Nigerian equities market resumed trading for the week on Monday, closing with a decline of 0.22 per cent as the All-Share Index (ASI) shed 64.56 points or   0.22 per cent to close at 29,495.91 compared with 29,560.47 on Friday.

Similarly, investors’ wealth reduced by N24 billion or 0.22 per cent as market capitalisation closed lower at N11.079 trillion against N11.103 trillion recorded on Friday.

The performance was influenced by price depreciation in medium and large capitalised stocks.

Among these are Nestle Nigeria, Dangote Cement, Flour Mills Nigeria, Ecobank Transnational Inc (ETI) and United Bank for Africa (UBA).

Analysts at Afrinvest Limited said: “Following the negative performance and weakened investor sentiment, we expect sustained low activity this week, barring any major economic events.

“Our outlook remains bearish, but we do not rule out bargain hunting toward the end of the week as witnessed last week.”

Looking into this week, analysts at United Capital Plc expected bargain hunters looking to take advantage of cheaply priced stocks to guide sentiments in the near term as Relative Strength Index (RSI) hovers below its oversold region.

Also, market breadth closed positive with 26 gainers against 17 losers even as Initiates recorded the highest price gain of 9.59 per cent to close at 80k per share.

Dangote Flour Mills followed with a gain of 9.52 per cent to close at N9.20, while First Aluminium rose by 9.38 per cent to close at 35k per share while Cadbury appreciated by 8.91 per cent to close at N11, while Consolidated Hallmark Insurance went up by 8.33 per cent to close at 26k per share.

Conversely, Associated Bus Company led the losers’ chart by 10 per cent to close at 36k per share and A.G. Leventis (Nigeria) followed with a decline of 9.68 per cent to close at 28k, while Niger Insurance declined by 9.09 per cent to close at 20k per share.

Royal Exchange declined by eight per cent to close at 23k, while United Bank for Africa (UBA) was down by 4.62 per cent to close at N6.20 per share.

Total volume of shares traded went down by 4.6 per cent to 223.78 million shares valued at N1.79 billion exchanged in 3,175 deals in contrast to a turnover of 232.77 million shares worth N1.97 billion transacted in 2,677 deals on Friday.

Sovereign Trust Insurance was the toast of investors with 45.72 million shares worth N10.96 million while Chams accounted for 36.84 million shares valued at N10.93 million, while Union Bank of Nigeria traded 26.22 million shares worth N178.41 million.

Guaranty Trust Bank sold 14.36 million shares valued at N503.35 million, while UBA transacted 13.65 million shares worth N86.38 million.