The Nigerian bourse declined further at the end of Wednesday’s trading session as the All Share Index slid 0.9% to close at 28,221.18 points. Market capitalization settled at N9.7tn as investors lost N91.8bn. The benchmark index was dragged by depreciations in DANGCEM (-1.3%), ZENITH (-4.0%) and OANDO (-9.6%). Market activity however paced up as volume and value traded appreciated 28.0% and 33.4% to close at 309.7m units and N2.1bn respectively.
All Indices but Consumer Goods Close Lower
All sector indices recorded declines except for Consumer Goods index which rose 4bps following gains in DANGSUGAR (+2.3%), FLOURMILL (+0.9%) and NIGERIAN BREWERIES (+4bps). The Banking Index dipped the most, down 1.3% amid sector-wide sell pressure led by STANBIC (-4.8%) and ZENITH (-4.0%). The Oil & Gas index followed closely declining 1.2% as OANDO traded 9.6% lower whilst the Industrial Goods index weakened 0.9% as DANGCEM loses 1.3%. Similarly, the Insurance index depreciated 0.5%.
OANDO Tops Decliners’ Chart
Sell sentiment in OANDO continued today as the stock emerged worst performer for the second consecutive trading session this week following its profit warning notification. However, investor sentiment remained soft as market breadth closed at 0.3x consequent on 8 advancing stocks against 27 decliners. The best performing stocks were SKYEBANK (+8.3%), PREMBREW (+5.0%) and TRANSEXP (+5.0%) while OANDO (-9.6%), TRANSCORP (-7.2%) and LAWUNION (-7.3%) led the laggards. We expect market performance to remain soft amid unimpressive Q2:2016 corporate scorecards although we do not rule out bargain hunting as we approach the end of the week.