Bears consolidate hold on market as Dangote, NB others shares dip

With the market dipping by 3.3 per cent on Wednesday at the Nigerian Sock market, investors have continue to count their losses for the third day running, especially as the bearish trend persisted.

The decline which is the highest loss in 13 months has depressed the Nigerian Stock Exchange All-Share Index to close at 27,180.76. Also market capitalization shed N316.9 billion to close lower at N9.3 trillion.

National Daily gathered that the huge loss recorded yesterday was occasioned by the massive sell pressure in the shares of Dangote Cement Plc and the Nigerian Breweries that were the most capitalized stocks on the bourse.

While Dangote Cement fell by 9.8 per cent, Nigerian Breweries Plc went down by 5.5 per cent. In all, 26 stocks lost value while 13 added values with all sectorial indices ending negatively.

The NSE Consumer Goods Index led with a decline of 2.1 per cent majorly on the losses by Nigerian Breweries (5.5%), PZ Cussons (2.9%) and Dangote Cement (9.8%). The NSE Industrial Goods Index fell by 1.3 per cent while the NSE Banking Index went down by 0.9 per cent as a Access Bank Plc and United Bank for Africa Plc lost 2.6 per cent and 2.4 per cent respectively.

The NSE Insurance Index and NSE Oil & Gas Index closed the day lower shedding 0.3 per cent and 0.2 per cent in that order.

Commenting on the bearish trend in the market, analysts at Meristem Securities Limited said the negative mood is mainly driven by the sustained investors’ negative sentiments brought from last year.

The analysts had cited the factors that led to the dip in 2015 to include: the decline in crude oil prices, the falling value of the naira as well as the anticipation and subsequent increase of interest rates in the United States.

They had noted that participation in the Nigerian equities market would likely to remain tempered in the short-term given the impact of foreign investors and their wariness to participate given their perception that the naira is ‘unfairly’ valued.

The market had ended 2015 with a decline of 17. 3 per cent and when it was expected that the bears may have a little break, they have been consolidating their hold on the market since trading began on Monday.