NSE Index drops to 27,000 mark, lowest in 26 months

• As investors lose N87 billion

Investors on The Nigerian Stock Exchange (NSE) on Thursday suffered a loss of N87 billion as bearish trend on the bourse continued as the market performance indicator (NSE-ASI) fell to 27,000 index points, the lowest in the last 26 months.

The All-Share Index of the Exchange reached all time low of 27,864.49 due to sell pressure in Seplat and 18 other equities which resulted in the index losing 178.31 points or 0.64 per cent to close lower at 27,864.49 against 28,042.80 achieved on Wednesday.

Also, the market capitalisation which opened at N13.666 trillion as it shed N87 billion or 0.64 per cent to close at N13.579 trillion.

The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are: Seplat, International Breweries, MTN Nigeria, Nigerian Breweries and Ecobank Transnational Incorporated (ETI).

Analysts at Afrinvest Limited noted: “we expect the market to trade bearish in the sessions ahead.”

Analysts at Cordros Capital Limited have this to say: “our outlook for equities in the short to medium term remains conservative, amidst the absence of any catalyst to drive positive market returns.”

The market breadth was negative, with 12 gainers compared with 19 losers as Conoil recorded the highest price gain in percentage terms, appreciating by 9.76 per cent to close at N20.25 per share.

Dangote Sugar Refinery followed with a gain of 9.22 per cent to close at N11.25, while Sovereign Trust Insurance appreciated by five per cent to close at 21k per share.

Japaul Oil & Maritime Services went up by 4.76 per cent to close at 22k, while FCMB Group appreciated by 4.58 per cent to close at N1.60 per share.

Conversely, Berger Paints and International Breweries led the losers’ chart by 10 per cent, each to close at N6.30 and N17, respectively. Seplat followed with a loss of 9.43 per cent to close at N5.30 per share.

C &I Leasing and NEM Insurance depreciated by 9.17 per cent each to close at N4.95 and N2.08, while ETI declined by 9.05 per cent to close at N9.05 per share.

The volume of shares traded closed lower with an exchange of 175.36 million shares valued at N2.71 billion in 2,653 deals in contrast with 243.72 million shares worth N3.89 billion exchanged in 3,449 deals on Wednesday.

Transactions in the shares of FBN Holdings topped the activity chart with 33.33 million shares valued at N189.9 million. Zenith Bank followed with a turnover of 21.27 million shares worth N395.12 million, while Sterling Bank traded 16.75 million shares valued at N35.56 million.

United Bank for Africa (UBA) sold 16.28 million shares worth N90.37 million, while Access Bank sold 9.35 million shares worth N56.81 million.