Election phobia: Stock market’s index drops further by 0.78%

Traders work at the Nigerian Stock Exchange in Lagos

The volatility of the Nigerian Stock Exchange (NSE) remained unabated on Monday with crucial market indices decreasing further by 0.78 per cent.

The Share Index shed 238.62 points or 0.78 per cent to close at 30,400.28 against 30,638.90 posted on Friday.

In the same vein, the market capitalisation, which opened at ₦11.425 trillion lost ₦89 billion or 0.78 per cent to close at ₦11.336 trillion.

Nestle recorded the highest loss of the day, dropping by ₦25 to close at ₦1,450 per share.

Total trailed with a gain of ₦2.80 to close at ₦200.20, while MRS dipped by ₦2.55 to close at ₦23.15 per share.

Unilever was down by ₦2.55 to close at ₦33.75, while Okomu Oil went down by ₦2.40 to close at ₦77.60 per share.

Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd., said the ongoing volatility would persist due Rebalancing of portfolios by investors and fund managers.

Omordion said investors would continue with ‘wait and see attitude,” while watching the political space ahead of full year company earnings reports and post-election market dynamics.

He said these factors would drive prices north or south before and after the Presidential election.

“Investors should review their positions in line with their investment goals, strength of the companys’ numbers and act as events unfold in the global and domestic environment,” Omordion said.

However, on the positive side, Stanbic IBTC led the gainers’ table with a gain of 50k to close at ₦47 per share.

Guaranty Trust Bank followed with a gain of 35k to close at ₦33.85, while
Diamond Bank gained 18k to close at N1.98 per share.

Eterna Oil rose by 10k to close at ₦4.40, while Lafarge Africa increased by 5k to close at ₦11.35 per share.

Diamond Bank emerged the toast of investors as the most traded equity, accounting for 77.68 million shares worth ₦153.10 million.

Zenith Bank followed with an account of 19.75 million shares valued at ₦430.09 million, while FBN Holdings traded 10.82 million share worth ₦80.60 million.

Guaranty Trust Bank traded 8.46 million shares valued at ₦286.04 million, while Access Bank sold 7.33 million shares worth ₦42.94 million.

In all, the volume of shares traded closed lower with an exchange of 222.58 million shares valued at ₦3.34 billion in 3,746 deals.

This was in contrast with 334.32 million shares worth ₦1.77 billion traded in 4,083 deals on Friday.