Bearish sentiment strengthened as NSE capitalisation dips N75b
The Nigerian Stock Exchange (NSE) commenced trading for the week on a
downward note, following losses recorded by bellwethers, causing market
capitalisation dipped further by N75 billion.
At the close of trading yesterday, the All-Share Index (ASI)
decreased by 144.78 absolute points or 0.35 per cent to close at
41,564.31 points. Similarly, the overall market capitalisation shed N75
close at N21.744 trillion. The downturn was impacted by losses
recorded in large and medium value stocks, including Guaranty Trust
Bank, PZ Cussons Nigeria, Flour Mills of Nigeria, Unilever Nigeria, and
Analysts at United Capital Plc said the direction of corporate
releases would drive the performance of the equity market this week.
“The recent hike in rates in the NTB and OMO posed
a system risk, as we expect some investors to pull back in the
market. However, we imagine that dividend income should sustain interest
in stocks,” they said. Also, analysts at Afrinvest Limited, said: “In
the next trading session, we expect to see slight profit-taking in
high-priced stock.” Meanwhile, sentiment, as measured by market breadth
was positive, as 23 stocks gained relative to 16 losers.
Source:Guardian, February 9, 2021