Trading at the stock market resumed for the new week on a bearish note as the Nigerian Stock Exchange (NSE) All-Share Index fell by 0.45 percent to close at 26,866.41. Similarly, the market capitalization shed N58.9 billion to close at N13.1 trillion.
The market had depreciated by N3347 billion last week following losses by banking stocks. Although some level of bargain hunting was expected this week, losses by bellwethers such as Seplat Petroleum Development Company Plc, Nestle Nigeria Plc, Dangote Cement Plc, and Stanbic IBTC Holdings Plc made the market to sustain its bearish trend.
However, analysts at Cordros Capital had said while they expected the negative trading to persist through the final quarter of the year, they also expected some pockets of gains over the final months of the year as fund and portfolio managers realign portfolios prior to the start of 2020.
“Nonetheless, we note that valuations remain attractive driven by price deterioration throughout the year. Hence, we advise that long-term investors consider appropriately timed investments,” the analysts said.
Meanwhile, the price losers’ chart for yesterday was led by Cornerstone Insurance Plc with 10 percent, trailed by Seplat with 6.8 percent. Cadbury Nigeria Plc shed 5.7 percent as investors appeared to be ignoring the impressive half-year results posted by the company.
Cadbury Nigeria Plc reported revenue of N19.455 billion for the half-year ended June 30, 2019, showing an increase of 11 percent compared with the N17.555 billion recorded in the corresponding period of 2018.
Profit before tax stood at N953 million compared with a loss of N424 million, while the company ended with a profit after tax of N669 million.
According to the company, the overwhelmingly positive result reflected the success of its current drive to sustain its growth trajectory and to enhance shareholder value.
On the positive side, Courtville Business Solutions Plc led the price gainers with 10 percent followed by African Prudential Plc with 9.9 percent. Associated Bus Company Plc chalked up 8.8 percent, while Wema Bank Plc, UAC of Nigeria Plc and Chams Plc added 8.3 percent among others.
Despite the bearish trading, activity level rose as volume and value of trading rose 9.2 percent and 45.6 percent to 151.7 million shares and N1.5 billion respectively.