NSE: Political uncertainties induce sell pressure as stocks depreciate

Political uncertainties has continued to spark volatility and induce sell pressure on the equity sector of the Nigerian Stock Exchange (NSE), as virtually all the major blue chip stocks depreciated in price, causing market capitailisation to dip further by N54billion.

Specifically at the close of transactions yesterday, the All-share index (NSE-ASI) shed 145.62 absolute points, representing a decline of 0.40 per cent to close at 36,333.80 points. Also, the market capitalisation lost N53billion to close at N13.262trillion.

The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are; Seplat Petroleum Development Company, Chemical & Allied Products (CAP), Lafarge Africa, Guaranty Trust Bank and Forte Oil.

Analysts at APT Securities and Funds Limited, said: “The market swayed southward against expectation as the market may sway either way, as we dive more into the trading week. However, the market is open to another round of bargain hunting in the next trading session on positive sentiment.”

However, market breadth closed positive, with 22 gainers versus 21 losers. Airline Services & Logistics, Livestock, and United Capital recorded the highest price gain of 10 per cent each to close at N4.95, 66kobo, and N3.08 per share, respectively. Neimeth Pharmaceuticals followed with a gain of 9.23 per cent to close at 71kobo, while Niger Insurance appreciated by 9.09 per cent to close at 36kobo per share.

On the other hand, CAP led the losers’ chart by 10 per cent each, to close at N28.35 per share.Mutual Benefit Assurance followed with a decline of 8.82 per cent to close at 31kobo, while Seplat Petroleum Development Company appreciated by 8.45 per cent to close at N650, per share.

Sovereign Trust Insurance declined by eight per cent to close at 23kobo, and AXA Mansard Insurance shed 4.80 per cent to close at N2.38 per share.

The total volume traded rose by 36.07 per cent to 248.05 million shares, worth N2.25billion, traded in 3,932 deals.

Transactions in the shares of Wema Bank topped the activity chart with 53.5 million shares valued at N37.45million. Guaranty Trust Bank followed with 23.42 million shares worth N925.45million.UBA traded 22.19 million shares valued at N214million. Diamond Bank traded 16.93 million shares valued at N21.21million, while United Capital transacted 14.23 million shares worth N43.23million.