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… Nigerian breweries, GTB, lead losses
By Peter Egwuatu
The Nigerian Stock Exchange, the NSE All Share Index, ASI, fell -1.61% to close at 32,190.07 points, following uncertainties surrounding the postponement of the general election in Nigeria by l & # 39; Independent. National Electoral Commission, INEC, last weekend.
The elections that were to be held last Saturday, February 16th have been postponed for a week to Saturday, February 23rd, 2019 by INEC. Just hours before the vote began, an operator and badysts in the development capital market had predicted an adverse effect on the stock market.
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The decline in the market was caused by large customer inventory losses – Nigerian Breweries (-9.6%), Guaranty Trust Bank (-3.8%) and Zenith Bank (-3.0%).
As a result, market capitalization, which represents the value of investors, decreased by N.119.8 billion to N12 trillion, while growth since the beginning of the year (Ytd) was moderate. at 2.4%. The level of activity has weakened as the volume and value traded decreased by 71.2% and 48.2% to 232.7 million units and 3.4 billion of N, respectively.
Sectoral performance was also negative, with the five indices closing in the red. The Banking and Oil & Gas indices led stocks down 3.2% and 2.9%, after profit taking by GTBank (-3.8%), Zenith Bank (-3.0%), Total (-7.3%) and MOBIL (-7.6%).
The consumer goods index fell -1.5%, following losses recorded by Nigerian breweries (-9.6%) and Dangote sugar (-4.9%), while industrial goods fell 1.2% following mbadive sales by the Cement Company of Northern Nigeria CCNN (-4.8%) and Dangote Cement (-0.4%). WAPIC Insurance (-4.7%) and NEM Insurance (-2.0%) led the insurance index down 1.1%.
Investor confidence, as measured by the size of the market, weakened, with 12 stocks advancing versus 37 declining.
In response to market development, Chief Patrick Ezeagu, President of the Nigeria Brokerages Association, said: "The market has responded well, with a decline of 1.61% in ASI. Uncertainty harms the market and the unexpected postponement of the elections has generated this avoidable negative sentiment. We had to put our actions together in this climate for once. "
Analysts at Afrinvest Research said, "We expect the downtrend will continue this week due to pre-election unrest caused by uncertainties surrounding the elections."
But Victor Chiazor, an investment badyst at FSL Securities & Investment Limited, said that in addition to the electoral turmoil, poor corporate performance announced by blue-chip companies has contributed to the market downturn.
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Moreover, he did not agree that the bearish development would be maintained.
He said: "Despite some positive economic indicators, the market is reacting negatively to the postponement of the elections. The unimpressive gains were published by groups like Nigerian Breweries and also recorded some mbadive sales from investors who took profits because the market recorded a decent business figure. run in the last ten days.
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