Nigerian equities mounted further loss on Monday as the bourse of Africa’s largest economy saw its longest losing streak so far this year with stocks shedding over N442.386 billion in the last six days of trade, going down by 0.34 per cent.
No trading session has recorded gain this month and that sets grim prospects for an exchange that emerged the best-performing in January.
Monday’s loss was driven by losses in bank and consumer goods stocks especially GTB, PZ, Flour Mills, Unilever and Champions Breweries.
Meanwhile, analysts expect the embargo on crypto-currencies to bolster activity at the equity market.
The News Agency of Nigeria reported that Ambrose Omordion, the chief operating officer of InvestData Limited said in an interview that the Central Bank of Nigeria’s action should aid the movement of funds into the stock market in a bid to find higher yields.
He added that it would back market recovery as the earnings season for 2020 financial results shapes up.
“The ban on cryptocurrency will trigger circular flow of funds searching for a better return as the equity market today is ahead of year-on-year headline inflation.
“The market is expected to rebound in the new week on earnings season kicking off with early fliers that will come with dividend report.
“We advise that you target dividend-paying stocks and fundamentally sound companies with growth prospect in 2021, especially given the low interest rates regime and sustained oil price rally that have so far supported the economy and equity market,” Mr Omordion said.
A positive market breadth was recorded as 23 gainers emerged against 16 losers.
The All Share Index (ASI) declined to 41,566.86 basis points. Similarly, market capitalisation depreciated to N7.114 billion to N21.744 trillion at the end of trade.
Year to date, the index is down by 3.22 per cent.
TOP FIVE GAINERS
McNichols led gainers, appreciating by 9.59% to close at N0.80. UPDC REIT added up 9.09% to end today’s trade at N6. Multiverse went up by 8.33% to N0.26. Fidson rose to N6, notching up 8.30% in the process. African Prudential completed the top 5, climbing by 8.21% to N7.25.
TOP FIVE LOSERS
Champion Breweries was the worst performing stock, declining by 9.70% to close at N2.50. PZ shed 9.73% to close at N5.10. Jaiz Bank fell to N0,65, losing 9.72%. Cornerstone dipped to N0.59, recording 9.23% depreciation. RT Briscoeclosed at N0.20, going down by 9.09%.
TOP FIVE TRADES
In all, 340.490 million shares estimated at N2.641 billion were traded today in 5,263 deals.
Union Bank was the most active stock with 78.808 million units of its stocks worth N457.063 million traded in 34 deals. 54.246 million units of FBN Holdings shares priced at N396.422 million exchanged hands in 244 transactions. Access traded 33.957 million shares estimated at N289.601 million in 346 transactions. Transcorp traded 16.688 million shares valued at N16.831 million in 127 deals. Zenith had 14.166 million shares valued at N368.611 million traded in 398 deals.
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