Investors and participants on the Nigerian Stock Exchange suffered a N49.5 Billion loss on Wednesday as the market All-Share Index shed 0.38% to close at 24,655.05. Today’s loss marks the third consecutive day of loss this week.
The activity level improved a bit over the last trading session, although remaining low when compared to preceding months. The volume of stocks traded increased by 12.72% to 189,253,004, while the value of stocks traded increased by 27.80% to N1.91 Billion.
FBNH was the most traded stock by volume, with 44,445,414 shares valued at N241,094,639.15 exchanging hands in 177 deals.
ZENITHBANK was the most traded stock by value, with N349,374,624.20 worth of shares total 21,345,619 traded in 249 deals.
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Only 2 of the 5 indices under our watch gained today. The Insurance Index was up by 0.87%, propelled by 6.67% gain by AIICO, 4.44% gain by PRESTIGE and 4.17% gain by LASACO.
The Banking Index was up by 0.24%, on the back of gains by 8 Banking stocks, led by UNITYBNK (7.41%), FIDELITYBK (2.89%), and WEMABANK (1.85%).
The Oil & Gas and Consumer Goods Index declined by 4.11%, and 1.63% respectively, due to 9.98% drop in SEPLAT for the Oil and Gas Index. While the Consumer Goods Index was dragged down by massive loses in PZ (-10.00%), INTBREW (-9.89%), and GUINNESS (-9.09%).
The Industrial Goods Index was flat, as it closed at the same point where it started the day.
Investor Sentiment remain weak at 0.8x; 17 stocks appreciated today while 22 stocks declined. The three top gainers are CHAMS (9.52%), CHAMPION (7.95%) and UNITYBNK (7.41%). The top three losing stocks are PZ (-10.00%), SEPLAT (-9.98%) and INTBREW (-9.98%).
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Elsewhere around the world, there was massive sell offs in major markets after the IMF revised the world economic outlook downwards. The DOW shed 2.72%, S&P was down 2.59%, while the FTSE 100 dropped by 3.11%.
The price of Brent Crude was also affected by the announcement, in addition to the growing concern that there will be a second wave of COVID-19, which might necessitate another lock down. At the time of this report, Brent Crude was trading at $40.35, and the WTI was at $37.97 per barrel, both down by over 5%.
We anticipate a continued depressed activity level in the Nigerian market, as Investors await the H1 financial reports from listed companies. The results will give a glimpse of the impact of the coronavirus pandemic on businesses in country.
Written by;
Nnamdi M.
