Equity investors lost N151.4 billion on Tuesday in the wake of US oil turmoil on Monday. Nigerian Stock market extended loses to the second day of trading in the week with All Share Index (ASI) losing 1.27% to close at 22,629.92. The market opened with Zenith Plc being the first listed company to appear on the decliners table.
Investor’s sentiment which measures the number of gainers versus losers on the exchange weakened significantly to 0.1x as more stocks declined and only few advanced.
At the close of trading on Tuesday, 27 stocks declined in value, 4 stocks advanced whereas 4 remained unchanged. Activity level waned as the volume and value of stock traded dropped significantly.
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250.35 million units of shares exchanged hands in 4,877 deals worth N2.32bn. This represents a 27.53% decline in volume traded compared to 345.44 million units the previous day. The value of stocks traded also dropped by 44.74% from N4.21 billion on Monday. However, number of deals dropped marginally by just 1.08% from 4,930.
Investors lost N151.4 billion as the market capitalization dropped to N11.79 trillion from N11.94 trillion. This loss is largely attributed to the unprecedented fall in US oil market on Monday followed by over 20% decline in the price of oil benchmark – Brent crude on Tuesday.
In addition, there is increasing Coronavirus (Covid-19) cases in Nigeria, which stood at 665, with 188 recoveries and 22 deaths as at 11:10pm (Nigerian time) on Monday according to the data available on Nigerian Centre for Disease Control website.
All the indices under our watch closed in negative territory. With banking index losing most at 5.75%. The Insurance, Oil & Gas, Industrial and Consumer Index lost 1.45%, 1.25%. 0.88% and 0.1% respectively.
Oando Plc topped the decliners table, losing 10% of its value to close at N2.25. It was followed by WAPCO Plc and Zenith Bank Plc with losses of 9.21% and 7.77% respectively to close at N10.35 and N13.05 respectively. Guaranty Trust Bank Plc lost 7.769% of its value to close at N18.35 on Tuesday.
Of the four stocks that advanced, Omoluabi Mortgage Bank Plc (OMOMORBNK) led with a gain of 9.09% closing at N0.60 per share. Followed by NPF Microfinance Bank Plc (NPFMCRFBK) which closed at N1.25 representing an 8.7% increase.
View of Analysts at Investogist.
As the fall in oil prices persists, Covid-19 still not brought under control with many parts of the country under movements restrictions and businesses closed. We maintain our negative outlook on the market in the near term.