Equities Declines by 0.58% on Weaker Demand as Value Traded Falls By 31.29%

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The bears continued to dominate the equities market, as the All Share Index (ASI) dipped by 0.58 percent to 36,748.18 points, amidst continued sell pressure in value stocks.

The Banking index posted the largest loss, dropping 2.00 percent, following significant sell pressure in the shares of FBN Holdings (-9.76 percent), Guaranty Trust Bank (-6.76 percent) and Wema Bank (-8.82 percent) despite a positive performance in its half year 2018 results released yesterday, which showed a 28.69 percent year on year increase in profit after tax.

The Oil & Gas (-1.20 percent) and Industrial Goods (-0.52 percent) indices also recorded negative returns, owing to persisting losses in Oando (-9.52 percent) and Lafarge Africa (-1.45 percent) shares, respectively.

On the flip side, gains resurfaced in the Insurance (+1.32 percent) and Consumer Goods (+1.06 percent) indices, following investors’ interest in Continental Reinsurance (+10.00 percent) and PZ (+9.74 percent) stocks, respectively.
Market breadth remained negative, albeit with an improved margin, with 23 losers and 19 gainers, led by FBN Holdings (-9.76 percent) and Continental Reinsurance (+10.00 percent), respectively.

Total volume and value of trades declined by 11.05 percent and 31.29 percent, to 181.28 million units and N1.64 billion, respectively, exchanged in 3,854 deals.

Meanwhile, proceedings in the forex market remained stable, as the Dollar/Naira closed flat at N361 in the parallel market, while it strengthened marginally, by less than 0.01 percent, to N361.69 in the I&E X window. Total turnover in the I& E window dropped 42.89 percent to $70.77 million, consummated within the N359.50-N362.84/$ band.

On fixed income and money market, the overnight lending rate declined further by 191 basis points to 6.67 percent, in anticipation of inflows of OMO bills of N430.18 billion and net primary market repayments of N71.36 billion billion in tomorrow’s trading session.

Average yield continued to trend southward in the treasury bills market, declining by 11 basis points to 11.60 percent, amid bullish sentiments.

Sentiments in the bond market were mixed, albeit with a bearish tilt, as average yield inched higher by 1 bps to 13.84 percent. Yield expansion at the short at -4 basis points and long +2 basis points end of the curve, outweighed contraction at the mid by -3 basis points segment.

 

 




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