NSE capitalisation drop by N61bn, as 22 stocks depreciate

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The Nigerian Stock Exchange (NSE)

The market capitalisation of the Nigerian Stock Exchange dropped by N61bn at the close of trading on Thursday, as 22 stocks depreciate.

A total of 112.523 million shares worth N2.359bn were traded in 2,684 deals.

The NSE market capitalisation slid to N9.289tn from N9.350tn, while the NSE All-Share Index closed at 27,044.36 basis points from 27,223.08 basis points.

After trading in positive territory for most of the session, losses intensified on the Nigerian bourse, pressured by last minute ample declines across select stocks.

The financial services sector was the only sector to close positive as 3.7 per cent gain in Diamond Bank Plc and 1.96 per cent gain in Zenith Bank Plc countered 3.73 per cent loss in Ecobank Transnational Incorporated Plc and Guaranty Trust Bank Plc 0.42 per cent loss.

After leading advances in the previous session, the industrial goods sector weighed most on the ASI following renewed sell pressure in Ashaka Cement Plc and Dangote Cement Plc resulting in 9.71 per cent and 1.47 per cent losses, respectively.

The consumer goods index also extended its negative close following sustained decline in Nigerian Breweries Plc by 1.48 per cent. The oil and gas sector posted relatively milder losses after marginal declines across Forte Oil Plc and Oando Plc by 0.25 per cent and 0.22 per cent, respectively.

Market breadth turned negative with 20 advances and the 22 declines.

Global markets traded mixed amid fresh Brexit concerns, uncertainty over the United States election and as investors continue to focus on earnings.

On what will shape the next trading session, analysts at Vetiva Capital Management Limited, said, “Following the persistent pressure across a handful of large cap stocks, we expect the ASI to drop more points at week close.”

Meanwhile, the Central Bank of Nigeria held an Open Market Operation auction on Thursday, selling N19bn and N98bn on the 196-day and 364-day bills at respective stop rates of 18 per cent and 18.5 per cent (effective yields: 19.93 per cent and 22.69 per cent).

Despite this, the interbank call rate moderated by 450 basis points to 10 per cent. At the foreign exchange interbank market, the naira once again held at N304.75 against the dollar at the spot market while the one-year forward rate decreased N28.15 to settle at N348.18.

At Wednesday’s Treasury bills Primary Market Auction, the CBN sold N22bn, N19bn, and N47bn on the 91-day, 182-day, and 364-day bills at respective stop rates of 14 per cent, 17.5 per cent, and 18.5 per cent (effective yields: 14.51 per cent, 19.11 per cent, and 22.69 per cent).

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