The equity market shed N35bn at the close of trading on the floor of the Nigerian Stock Exchange on Monday due to what analysts described as the consequence of the negative growth of the country’s Gross Domestic Product.
A total of 316.735 million shares worth N1.909bn exchanged hands in 3,924 deals.
Analysts had on Friday predicted that investors in the country’s capital market were likely going to exhibit negative sentiments following the drop in the GDP in the first quarter and outcome of the Monetary Policy Committee meeting.
The National Bureau of Statistics had on Friday released the first quarter real GDP report showing a 0.36 per cent year-on-year contraction in output. This comes on the back of the 0.81 per cent slowdown in the non-oil sector following declines in manufacturing, financial institutions and real estate activities.
The financial services sector (-201bps) was the biggest loser as declines in Zenith Bank Plc (-489bps), Access Bank Plc (-439bps) and Skye Bank Plc (-342bps) overwhelmed an advance in Stanbic IBTC Holdings Plc (+10.19 per ce Plc (+10.19 per cent).
Likewise, the consumer goods (-41bps) and oil and gas (-9bps) sectors came under pressure with PZ Cussons Nigeria Plc (-497bps), Tiger Branded Consumer Goods Plc (-146bps), Nigerian Breweries Plc (-56bps) and Forte Oil Plc (-25bps) shedding weight. The industrial goods sector, however, closed flat.
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