Analyst says stocks present buy opportunity
For the eighth consecutive time, equity market sustained sliding profile as virtually all the blue chip stocks recorded price depreciation yesterday, as investors lose N125billion in three trading days.
Specifically, the market capitalisation of listed equities dropped by N125billion to N12.803trillion from N12.928trillion at which the market reopened for transactions on Monday.
The All-share index suffered the same fate as it declined from 35,410.61 points to 35,069.34 representing 1.0 per cent loss.Yesterday’s downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are; Nestle Nigeria, Berger Paints, Zenith Bank, Oando, and Airline Services and Logistics.
Analyst opined that the market presents buy opportunity amid higher expected dividend yield, given the lower prices.Specifically, analyst at Afrinvest said: “In subsequent sessions, we anticipate a marginal rebound as we expect investors to take position in bellwethers with attractive entry prices.”
Market breadth closed negative, with 12 gainers versus 29 losers. Linkage Assurance recorded the highest price gain of 9.68 per cent, to close at 68kobo per share. Union Diagnostic & Clinical Services gained 3.70 per cent to close at 28kobo.
FBN Holdings appreciated by 3.14 per cent to close at N9.85 per share. May and Baker appreciated by 3.07 per cent to close at N2.35, while Total Nigeria gained 2.70 per cent to close at N190 per share.
On the other hand, UACN Property Development Company led the losers’ chart by 10 per cent, to close at N1.71 per share. Berger Paints followed with a loss of 9.72 per cent to both close at N6.50, while Learn Africa declined by 9.45 per cent to close at N1.15 per share.
Airline Services and Logistics shed 9.09 per cent to close at N4.50, while Oando declined by nine per cent to close at N4.55 per share. However, the total volume traded improves by 27.37 per cent to 209.5 million shares worth N2.9billion, traded in 4,044 deals. Transactions in the shares of United Bank for Africa topped the activity chart with 28.27 million shares valued at N255.04million.
Zenith Bank followed with 22.39 million shares worth N518.4million, while FCMB Groups traded 21.01 million shares valued at N38.66million.Guaranty Trust Bank traded 20.65 million shares valued at N785.45million, while Transnational Corporation of Nigeria (Transcorp) transacted 14.72 million shares worth N16.31million.
