Nigeria’s benchmark stock index fell for a fourth day yesterday, dropping 0.8 percent to the lowest since Oct. 27. Nestle Nigeria contributed the most index points to Thursday’s retreat, tumbling 5.6 percent.
The market attained a five-year high in January when it peaked at 45,321.82 basis points, Since then, the NSE’s benchmark All-Share index has seen a downtrend, due to continued sell-offs resulting from profit taking, investor reactions to the interest rate hike in the U.S, as well political uncertainties ahead of the nation’s 2019 general elections.
Data compiled by BusinessDay shows that Nigerian Breweries Plc, Larfarge Africa Plc, International Breweries, Union Bank Plc, Forte Oil Plc and PZ Cussons Nigeria PLC were the major drag on the NSE-ASI index to its 8month low at the close of the trading session yesterday.
Nigerian Breweries with a market cap of N844.5 billion has moved the market downward by -1208.4 points within the eight month period and was the highest by any firm on the index. Coming second place on the list is Lafarge with a market cap of N294.9 billion and the cement maker has dragged the index downward by a negative 240.8 points.
Also, loses in the share prices of international breweries Plc and Union bank of Nigeria Plc dragged the NSEASI index by -212.4 and -88.2 points, while that of forte oil Plc. and PZ Cussons Nigeria Plc followed closely dragging down the market index by -76.9 points and -75 points respectively in the period under review.
“We expect the sell-off to intensify as we approach the 2019 general elections. Nevertheless, we may see the downtrend taper slightly by the end of this month if the H1:2018 scorecards exceed analyst’s expectation,” said Ayodeji Ebo MD/CEO at Lagos-based Afrivest securities limited.
“However, we anticipate more interest from domestic retail and institutional investors who understand the political terrain better by taking advantage of cheaper valuations in the fourth quarter,” Ebo said in an emailed response to BusinessDay.
The Nigerian Stock Exchange All Share Index (NSE ASI) depreciated closed at 36,470.05 points, on Thursday. Similarly, the Market Capitalization fell by 0.76 percent to close at N13.21trn.
The three most actively traded stocks were GT Bank (78.36mn), Medview Airline (50mn), and Zenith Bank (26.51mn).
