The bears remained on rampage on the Nigerian Stock Exchange (NSE) on Wednesday with the All-Share Index dropping below 30,000 mark due to persistent sell pressure.
The News Agency of Nigeria (NAN) reports that the index lost, in spite of improved earnings reports, 558.04 points or 1.85 per cent to close at 29,668.73 compared with 30,226.77 recorded on Tuesday.
Also, the market capitalisation shed N210 billion or 1.85 per cent in six hours to close at N11.143 trillion against N11.353 trillion achieved on Tuesday.
Mr Ambrose Omordion, Chief Operating Officer, InvestData Ltd., attributed the persistent lull to low confidence and liquidity in the stock market.
Omordion said that ongoing volatility would continue as investors and fund managers re-balance their portfolios, with eyes fixed on political space and ongoing full year company earnings position and post-election market dynamics.
He said that investors should review their positions in line with their investment goals, strength of the company numbers and act as events unfold in the global and domestic environment.
“Investors look to government’s policy direction as the market faces low liquidity problems in the ongoing earnings reporting season, vis-à-vis, market and economic fundamentals.
“Given the drop in the prices of major blue chips in recent times, creating entry opportunities, we expect speculative trading to shape the market direction going forward,” Omordion said.
He said that investors should go for equities with intrinsic value and allow numbers guide their decisions, while repositioning in any stock, especially now that stock prices remained low in the midst of mixed company numbers, weak economic and market fundamentals.
NAN reports that Dangote Cement recorded the highest loss for the day, shedding N3 to close at N190 per share.
International Breweries trailed with a loss of N2.50 to close at N23.50, while Cement Company of Northern Nigeria lost N1.75 to close at N16.20 per share.
Guaranty Trust Bank went down by N1 to close at N35, while Zenith Bank declined by 90k to close at N20.40 per share.
Conversely, Nestle led the gainers’ table during the day, appreciating by N50 to close at N1,450 per share.
Nigerian Breweries followed with a gain of N3.10 to close at N60, while Oando advanced by 10k to close at N4.80 per share.
Sterling Bank added 9k to close at N2.48, while Fidelity Bank increased by 6k to close at N1.87 per share.
In spite of drop in market indices, the volume of shares traded inched by 43.94 per cent with an exchange of 542.58 million shares worth N5.66 million in 4,146 deals.
This was in contrast with a turnover of 376.95 million shares valued at N4.54 million exchanged in 4,018 deals on Tuesday.
Sterling Bank PLC was the most active stock, trading 144.19 million shares worth N348.93 million.
FCMB Group followed with an account of 68.72 million shares valued at N125.63 million, while FBN Holdings exchanged 55.02 million shares worth N414.96 million.
Zenith Bank sold a total of 35.70 million shares valued at N739 million, while Access Bank accounted for 35.40 million shares worth N207.35 million.