Investors lose N370 billion, highest dip in five months

Meristem facilitates N 127 . 9 b transaction in Dangote Cement
Stock market investors ' yesterday lost a whooping N 370 billion , as
the reign of the bears continued unabated on the trading floor of the
Nigerian Stock Exchange (NSE ).
This highest loss in five months was due to price losses suffered by
virtually all the blue chip companies , as profit raking was sustained
across major sectors at the end of yesterday 's transactions .
Specifically, market capitalisation of the NSE depreciated by N 370
billion or 2 . 5 per cent from N 15 . 337 trillion recorded when the
market reopened for the week on Monday to N 14 . 967 trillion .
Similarly, the All - share index dipped by 2 . 4 per cent or 1 ,029 .
74 points to 41 , 708 . 15 from 42 ,737 . 89 achieved on Monday .
Analysts at Cordros Capital however argued that equities outlook for
2018 remains positive despite selloff from investors . "Our theme on
equities remains positive , despite broad selloffs , as declining
prices suggest potential bargain hunting with investors positioning
ahead of Q 4 - 17 earnings season. "
Also, the Chief Research Officer, InvestData Consulting , Ambrose
Omordion, said: "The relatively low price attraction has boosted
positioning ahead earnings declaration, while supporting high
possibility of rebound today in the midst of volatility and portfolio
reshuffling as buying pressure is looking up again.
"But investors should value stocks as today trading confirm direction.
However, we would like to reiterate that investors should go for
equities with intrinsic value , especially during this season that
dividend payment is approaching .
"We advise investors to allow numbers guide their decisions while
repositioning for the rest of the year' s trading activities,
especially now that stock prices remain volatile amidst improving
company, economic and market fundamentals .
"It is time to combine fundamentals and technical tools to take
decision by knowing the support and resistant level to reposition or
exit any position . Market is in phases ; know the cycles in order to
manage your trading and investing risk ," he advised
Further breakdown of yesterday' s trading showed that 40 stocks
constituted the losers' chart led by Nestle with 40 . 00 kobo to close
at N 1320 per share, while Dangote Cement followed with 13 . 30 kobo
to close at N 258 . 70 per share. Nigerian Breweries trailed with 5 .
20 to close at N 127 . 80 per share. Guinness lost 5 . 00 kobo to
close at N 105 . 00 per share. International Breweries also
depreciated by 2 . 50 kobo to close at N 57 . 50 per share.
On the other hand, WAPCO topped the gainers ' chart with 1 . 00 kobo
to close at N 51 . 00 per share. Zenith Bank followed with 0 . 60 kobo
to close at N 30 . 00 per share. Berger garnered 0 . 45 kobo to close
at N 9 . 45 per share. Access Bank gained 0 . 45 kobo to close at N 12
. 00 per share. Dangote Cement also appreciated by 0 . 30 kobo to
close at N 21 . 00 per share.
Meanwhile, the value of transactions at the stock market surged 1 ,
295 per cent on Monday , following a huge investment made in Dangote
Cement Plc .
Specifically, investors committed N 127 . 933 billion on 752 . 113
million shares in 3 , 576 deals , up from N 9 . 173 billion invested
in 425 . 245 million shares in 4 , 104 deals last Friday .
Dangote Cement accounted for 96 per cent of the transaction value as
investors invested N 124 billion on about 551 million shares of the
cement firm. It was gathered that Meristem Securities Limited , which
had last August facilitated N 87 . 4 billion investment in Dangote
Cement was responsible for the N 124 billion venture .
Although the stockbroking firm refused to comment on the transaction ,
market operators said an existing foreign shareholder in Dangote
Cement might have increased its holding through the new investment.