Hi Everyone is this the end of the downward trend or are we going to experience more reccesion just look at the market state and what do you think?
The Nigerian equities market continued on its downward trend today for the second trading day in the week; causing the market to depreciate by 355 basis points. At the end of today’s trading session, the ratio of advancers to decliners was 0:66; the ASI lost 1,477.24 points to close at 40,162.91, whilst the market capitalization decreased by US$2.78billion to close at US$75.56 billion. Universal Insurance Plc lifted activities in Insurance sector and market in general as the stock accounted for 43.08% of total market volume, though more than 95% of this volume was block trades.
The circuit breaker of 1% downward limit was today removed by the Nigerian Stock Exchange and replaced with 5% downward limit. In spite of this regulatory action, the doldrums in the market was still pervasive as most of the stocks in the Banking and several other sectors experienced intensive selling pressure, with a greater number of them closing lower. In addition, no gainer was recorded today compared to sixty six (66) stocks that closed on offer and lost maximum 5%.
Activities in the market today suggest loss of investors’ confidence as well as illiquidity and this was corroborated by the surge in the volume of net offer. While the removal of the 1% limit down circuit breaker is a very much welcome development, the level of over-hang in the market still remains elusive. Barring any intervention in the market, we expect the downward trend to continue in the days ahead until the current over-hang is cleared.
Index was down by 355 basis pts on 4,383 trades. Average size of trade was US$2,416 with total value of US$10.59 m. Market cap closed at US$75.56 billion.
Overall, there were no gainer and 66 losers and 60 unchanged. The Insurance Sector led the volume chart followed by the Banking sector and both accounted for 63.77% of total volume traded.
Universal Insurance traded 96.243 million shares to top the overall volume chart. Other stocks that closed in the top echelon were Transcorp, UBA, Spring Bank and First Bank.
* Net Bid: Spring Bank
* Net Offer: Investment and Allied Insurance, FCMB, Fidelity Bank, Lasaco and Access Bank.
* Top Gainers: Nil.
* Top Losers: Air Services Plc, Oceanic, Platinum, BOC GAS and Con Oil
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