LAGOS: Investors Trade N1.9bn Shares amidst Continuing Bear Run

Source: THISDAY LIVE

The performance of the stock market was mixed on Wednesday as the volume of trading rose while the value of trading declined. Also, the bears that returned after six days of absence consolidated their hold on the market. Consequently, the Nigerian Stock Exchange (NSE) All-Share Index fell by 1.9 per cent, while market capitalisation shed N157.8 billion to close at 24,056.12 and N8.27 trillion.

Investors traded 335.61 million shares valued at N1.95 billion in 2,847 deals, compared 290.944 million shares worth N2.88 billion exchanged in 2,934 deals the previous day. The bears maintained their hold on the market with 27 price losers 13 gainers.


Northern Nigerian Flour Mills Plc led the price losers’ chart with 9.5 per cent, trailed by Unilever Nigeria Plc with 4.9 per cent. LearnAfrica Plc closed 4.8 per cent lower, just as Oando Plc shed 4.7 per cent.

Guinness Nigeria Plc went down by 4.4 per cent as investors continue to react negatively to the half year performance of the company.  But   profit before tax went down by 65 per cent to  N1.65 billion,  while profit after tax dipped by 66 per cent to N1.172 billion.

The Managing Director and Chief Executive Officer of Guinness, Mr. Peter Ndegwa had explained that  sales revenue came under pressure  as the operating environment weakened further.

“The contraction in economic activities during the period negatively affected our business. A significant erosion of consumer disposable income and consequent down-trading by price sensitive consumers took its toll on the industry and affected top line growth,” he said.

He, however, noted that   in spite of the deterioration in the economy,  the company’s  premium core brands showed recovery and resilience during the period with Guinness Foreign Extra Stout and Malta Guinness recording double digit shipment growth reflecting momentum against a weak period.

Meanwhile, Seplat Petroleum Development Company Plc led the price gainers with 5.9 per cent., followed by NPF Microfinance Bank Plcand Nahco Aviance Plc with 4.8 per cent apiece. May & Baker Nigeria Plc and NEM Insurance Plc garnered 4.7 per cent and 4.2 per cent in that order.

At the close trading, the NSE Industrial Index and NSE Consumer Goods Index shed 2.3 per cent and 1.8 per cent respectively. The NSE Banking Index also closed 0.9 per cent lower. However, the NSE Oil & Gas Index and the NSE Insurance Index appreciated by 0.7 per cent and 0.1 per cent respectively.