Vitafoam, Diamond Bank, Transcorp lead N56bn market loss

Vitafoam, Diamond Bank, Transcorp lead N56bn market loss

Vitafoam Nigeria Plc, Diamond Bank Plc and Transnational Corporation of Nigeria Plc, led the stock market into a loss of N56bn at the close of trading on the floor of the Nigerian Stock Exchange on Tuesday.

Data from the NSE showed a drop in market capitalisation to N9.172tn from N9.228tn, while the NSE All-Share Index slipped to 26,655.48 basis points from 26,818.77 basis points. The other losers in the top-five category were Forte Oil Plc and FCMB Group Plc.

A total of 396.030 million shares worth N2.657bn exchanged hands in 5,513 deals.

Following three consecutive banner sessions, Nigerian equities were said to have come under sell pressure as investors took profit across most key sectors.

On the global front, Asian markets traded in positive territory amidst a rally in a number of energy stocks driven by rising oil prices. European markets however traded mixed with bearish bias, pressured by declines in auto stocks while United States markets opened lower.

The oil and gas sector (-335bps) recorded the biggest decline, no thanks to a sell down in Forte (-875bps) and Total Nigeria Plc (-286bps).

The financial services (-135bps) and industrial goods (-3bps) sectors also closed lower on the back of decline in the shares of Zenith Bank Plc (-393bps), FBN Holdings Plc (-429bps), Guaranty Trust Bank Plc (-89bps) and Dangote Cement Plc (-6bps).

However, the consumer goods sector (+51bps) maintained an upward trend, posting the only positive close, as investors maintained their appeal for Nigerian Breweries Plc (+164bps) and Nestle Nigeria Plc (+42bps).

United Bank for Africa Plc topped the volume chart, trading 65 million units while Zenith Bank topped the value chart, trading 33 million units worth N511m.

The NSE ASI and NSE 30 lost 63bps and 79bps, putting year-to-date returns at -6.94 per and -8.35 per cent respectively.

Market breadth turned negative with 15 gainers and 35 losers.

Conoil Plc, Neimeth International Pharmaceutical Plc and Union Dicon Salt Plc led the gainers chart, advancing 9.47 per cent, five per cent and five per cent, respectively; while Vitafoam, Diamond Bank and Transcorp led the losers chart, declining 9.59 per cent, 9.45 per cent and 9.38 per cent, respectively.

On what would shape the next trading session, analysts at Vetiva Capital Management Limited said, “Noting the room for more profit taking across a handful of large cap stocks, we see likelihood of further decline across stocks in the session ahead.”

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