Following sell-offs triggered by the current undefined political climate, the domestic market reversed its bullish run shedding N195.8bn in market capitalisation to close at N12.0tn.
Losses in bellwether stocks – NIGERIAN BREWERIES (-9.6%), GUARANTY(-3.8%) and ZENITH (-3.0%) were the major drags as the All Share Index shed 1.6% to settle at 32,190.07 points while Year To Date (YTD) gain moderated to 2.4%.
Activity level weakened as volume and value traded declined by 71.2% and 48.2% to 232.7m units and N3.4bn respectively. ACCESS (25.3m units), CHAMS (21.7m units) and UBA (20.4m units) were the top trades by volume while NESTLE (N779.6m), UNILEVER (N574.7m) and GUARANTY (N519.1m) led the top trades by value.
Performance across sectors was negative as all 5 indices closed in the red. The Banking and Oil & Gas indices led decliners shedding 3.2% and 2.9% respectively following profit taking in GUARANTY (-3.8%), ZENITH (-3.0%), TOTAL (-7.3%) and MOBIL (-7.6%).
The Consumer Goods index trailed, down 1.5% on the back of losses in NIGERIAN BREWERIES (-9.6%) and DANGSUGAR (-4.9%) while the Industrial Goods index fell by 1.2% following sell offs in CCNN (-4.8%) and DANGCEM (-0.4%). WAPIC (-4.7%) and NEM (-2.0%) dragged the Insurance index 1.1% lower.
Investor sentiment as measured by market breadth (advance/decline ratio) weakened to 0.3x from 1.5x in the previous trading session as 12 stocks advanced against 37 decliners.
Yesterday’s top performers were PRESCO (+10.0%), BETAGLASS (+9.3%) and CAP (+6.9%) while TRANSCORP (-9.9%), CILEASING (-9.8%) and LIVESTOCK (-9.7%) declined the most.
Analysts at Afrinvest said: “We anticipate the bearish run to be sustained this week due to pre-election jitters caused by the uncertainties surrounding the elections.”
The Managing Director of Cowry Asset Management, Johnson Chukwu, said the events of the last 72 hours would have elevated the risk rating on Nigeria and would have cast aspersion on the ability of the electoral body to conduct a credible poll.
He said: “Going by these events, if we were to borrow funds internationally, we would have to pay a high interest rate so it is expected that the market reacted the way it did.
“We would have the opportunity to reverse these trends if the elections go very well and the actors in the elections behave responsibly post elections.”