Trading on the Nigerian Stock Exchange (NSE) on Thursday continued to react negatively to the outcome of the presidential election with the market capitalisation losing N196 billion to close below N12 trillion mark in February.
The News Agency of Nigeria (NAN) reports that the market capitalisation for last trading day in February shed N196 billion or 1.63 per cent to close at N11.828 trillion against N12.024 trillion on Wednesday, despite dividend of N16 declared by Dangote Cement.
Specifically, the market capitalisation shed N196 billion or 1.63 per cent to close at N11.828 trillion compared with N12.024 trillion achieved on Wednesday.
In the same vein, the All-Share Index lost 525.54 points or 1.63 per cent to close at 31,728.70 when compared with 32,244.24 recorded on Wednesday.
A market analyst, Ambrose Omordion, attributed the development to investors disappointment over the outcome of the elections.
Mr Omordion told NAN that smart investors that took position earlier in the market ahead of the presidential election and earnings seasons were disappointed.
He said the outcome of the election failed to meet their expectations with many of them resorting to profit taking and movement of funds to the fixed income market with high interest and lower risk.
According to him, investors are dumping their shares in spite of impressive earnings reports and high yields.
He said that apart from the outcome of the elections, everything was against the stock market ranging from delayed budget, expiration of the tenure Baof Central Bank of Nigeria (CBN) governor by June.
“The only factor for the stock market now is this earnings season, because nothing will happen between now and May 29,” Mr Omordion said.
He said 2019 budget implementation would likely commence in July and the Central Bank of Nigeria governor tenure likely to expire in June contributed to the current trend.
Mr Omordion said the trend might likely continue unless there was change in economic policies and reforms by the President re-elect.
NAN reports that some blue chips dominated the losers’ table and this was led by Nestle having lost N30 to close at N1,470 per share.
Nigerian Breweries trailed with a loss of N3.70 to close at N79.50, while Guaranty Trust Bank declined by N2.60 to close at N35.35 per share.
Stanbic IBTC depreciated by N2.05 to close at N46.25, while Dangote Flour Nigeria was down by N1.05 to close at N10.90 per share.
On the other hand, Dangote Cement having declared N16 dividend for 2018 financial year led the gainers’ table with N3.80 to close at N195.30 per share.
GlaxosmithKline followed with a gain of 35k to close at N12, while UAC Property gained 9k to close at N1.91 per share.
Union Bank of Nigeria added 5k to close at N7, while Live Stock also increased by 5k to close at 60k per share.
Guaranty Trust Bank led the activity chart, exchanging 44.62 million shares valued at N1.64 billion.
Sunu Assurances followed with an account of 38.52 million shares worth N7.70 million, while Access Bank exchanged 29.71 million shares valued at N177.64 million.
Union Bank of Nigeria exchanged 27.58 million shares worth N193.02 million, while Diamond Bank traded 25.76 million shares valued at N61.07 million.
In all, a total of 411.69 million shares worth N5.27 billion was traded by investors in 5,320 deals, indicating a decrease of 9.73 per cent against 456.07 million shares valued at N2.68 billion in 5,416 deals on Wednesday.
(NAN)
