Nigeria stocks end session in red as ASI plunges further

Nigerian stocks ended Tuesday’s trading session red. The All Share Index plunged by 1.80% to settle at 38,686.85 index points, with the Year date performance retracting by 3.97%.

Investor sentiment as measured by market breadth was negative as 14 stocks advanced against 26 that declined. CHAMPION (+9.78%) led the gainers for the day, while UBA (-10.00%) topped the losers.

Performance across sectors was bearish as 4 of 5 indexes under our coverage trended bearishly.

The banking index led laggards, down significantly by 5.21% on the back of sustained sell pressures in UBA (-10.00%), STERLING BANK (-8.81%), and ZENITHBANK (-2.03%).

Conversely, the consumer goods index closed as the lone gainer, up marginally by +0.26% on price appreciation in DANGSUGAR by +7.99%

Champion brewery led the gainers table, going up by 9.78% to close at N2.02, followed closely by Neimeth with 9.71% to close at N1.92. Others on the gainers table are; Curtix up 8.84% to close at N1.97, Dangote Sugar up 7.99% to close at N18.25 and NASCON up 7.69% to close at N14.

Eternal oil tops the loser’s table, with its stock value going by 10.00% to close at N5.13, followed by UBA down by 10.00% to close atN7.2

Bears staged a big comeback as investors sold UBA (-10.00%), WAPCO (-7.95%), MTNN (-5.88%) and ZENITH (-2.03%).

Selling pressures intensified on macros coming from earnings in UBA showing low dividend returns despite strong earnings coupled with Nigeria’s currency market facing an unusual level of FX scarcity, which kept significant pressure on Nigeria’s local currency.