Investors lose N370 billion, highest dip in five months

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Nigerian Stock Exchange

Meristem facilitates N127.9b transaction in Dangote Cement

Stock market investors’ yesterday lost a whooping N370billion, as the reign of the bears continued unabated on the trading floor of the Nigerian Stock Exchange (NSE).

This highest loss in five months was due to price losses suffered by virtually all the blue chip companies, as profit raking was sustained across major sectors at the end of yesterday’s transactions.

Specifically, market capitalisation of the NSE depreciated by N370billion or 2.5 per cent from N15.337trillion recorded when the market reopened for the week on Monday to N14.967trillion.Similarly, the All-share index dipped by 2.4 per cent or 1,029.74 points to 41,708.15 from 42,737.89 achieved on Monday.Analysts at Cordros Capital however argued that equities outlook for 2018 remains positive despite selloff from investors.“Our theme on equities remains positive, despite broad selloffs, as declining prices suggest potential bargain hunting with investors positioning ahead of Q4-17 earnings season.”

Also, the Chief Research Officer, InvestData Consulting, Ambrose Omordion, said: “The relatively low price attraction has boosted positioning ahead earnings declaration, while supporting high possibility of rebound today in the midst of volatility and portfolio reshuffling as buying pressure is looking up again.

“But investors should value stocks as today trading confirm direction. However, we would like to reiterate that investors should go for equities with intrinsic value, especially during this season that dividend payment is approaching.

“We advise investors to allow numbers guide their decisions while repositioning for the rest of the year’s trading activities, especially now that stock prices remain volatile amidst improving company, economic and market fundamentals.

“It is time to combine fundamentals and technical tools to take decision by knowing the support and resistant level to reposition or exit any position. Market is in phases; know the cycles in order to manage your trading and investing risk,” he advised

Further breakdown of yesterday’s trading showed that 40 stocks constituted the losers’ chart led by Nestle with 40.00 kobo to close at N1320 per share, while Dangote Cement followed with 13.30 kobo to close at N258.70 per share.Nigerian Breweries trailed with 5.20 to close at N127.80 per share. Guinness lost 5.00 kobo to close at N105.00 per share. International Breweries also depreciated by 2.50 kobo to close at N57.50 per share.

On the other hand, WAPCO topped the gainers’ chart with 1.00 kobo to close at N51.00 per share. Zenith Bank followed with 0.60 kobo to close at N30.00 per share. Berger garnered 0.45 kobo to close at N9.45 per share. Access Bank gained 0.45 kobo to close at N12.00 per share. Dangote Cement also appreciated by 0.30 kobo to close at N21.00 per share.

Meanwhile, the value of transactions at the stock market surged 1,295 per cent on Monday, following a huge investment made in Dangote Cement Plc.
Specifically, investors committed N127.933billion on 752.113 million shares in 3,576 deals, up from N9.173billion invested in 425.245 million shares in 4,104 deals last Friday.

Dangote Cement accounted for 96 per cent of the transaction value as investors invested N124billion on about 551 million shares of the cement firm.It was gathered that Meristem Securities Limited, which had last August facilitated N87.4billion investment in Dangote Cement was responsible for the N124billion venture.

Although the stockbroking firm refused to comment on the transaction, market operators said an existing foreign shareholder in Dangote Cement might have increased its holding through the new investment.