The Nation Newspaper

Category: Equities

  • Stanbic IBTC lists N11.45b ETF

    Stanbic IBTC lists N11.45b ETF

    Stanbic IBTC Asset Management Limited (SIAML), a wholly owned asset management subsidiary of Stanbic IBTC Holdings Plc, yesterday listed its Stanbic IBTC Exchange Traded Fund (ETF) 30 on the Nigerian Stock Exchange (NSE).

    The listing followed the successful completion of the ETF’s initial public offering, which was oversubscribed. SIAML had issued 10 million units of the Stanbic IBTC ETF 30 at a price of N100 per unit. But yesterday, it listed 11.447 million units valued at N11.447 billion. The listing followed approval of the allotments for the ETF by the Securities and Exchange Commission (SEC).

    An Exchange Traded Fund (ETF) is an investment vehicle that tracks an index, a basket of assets, or a commodity but trades like regular shares on a stock exchange. The objective of the Fund is to replicate as closely as possible the total return of the NSE 30 Index. The NSE 30 Index tracks the 30 most capitalised stocks on the NSE.

    The Stanbic IBTC ETF 30 will invest 100 per cent of its assets in the same portfolio of securities that comprise the NSE 30 Index in proportion to their weightings in the underlying index.

    Also, the rights issue of Pharma Deko Plc has opened for trading on the NSE, paving the way for investors who were not prequalified for the rights to buy into the company through renounced and traded rights. The offer is expected to close on January 30, 2015.

    Pharma-Deko plans to use the net proceeds of the rights issue to restructure its balance sheet and provided support for its business plan.

    Commenting earlier on the ETF, managing director, Stanbic IBTC Asset Management Limited (SIAML), Mr Olumide Oyetan explained that the NSE 30 Index comprises of the top 30 companies in terms of market capitalization. The index serves as the flagship benchmark for the stock market as it represents 92 per cent of the NSE’s market capitalization.

    He noted that the Fund represents a convenient and efficient way for investors to have access to the top 30 most capitalized and liquid stocks on the NSE, in a cost effective manner.

    He pointed out that the Stanbic IBTC ETF 30 will differentiate itself in the marketplace as a highly liquid and transparent investment adding that the financial services group would leverage on its extensive client base and brand name to promote Nigerian ETF to Nigerian and international investors.

    “Our target is to keep the expense ratio at one per cent. We are looking at growing this Fund to become one of the largest funds in the market,” Oyetan said.

  • Equities recovery may not be sustainable, say analysts

    Equities recovery may not be sustainable, say analysts

    The budding recovery at the Nigerian equity market may soon give way another round of depreciation, according to analysts at Afrinvest (West Africa).

    In a weekend review of the stock market, Afrinvest noted that the uptrend, which started on Thursday and continued on Friday, might be a temporary trend as investors might soon resort to profit-taking, thereby undermining the bullish trend.

    “Whilst the market mood seems to have turned positive towards the last two trading days of the week, we see the current rebound in the market as a temporary phenomenon as investors seem to be taking advantage of some low prices only to take profit in trading sessions ahead. Against this backdrop therefore, we anticipate a mix bag of trading in the coming week,” Afrinvest stated.

    Nigerian equities on the second day of the recovery on Friday gained N328 billion. The benchmark index at the Nigerian Stock Exchange (NSE) indicated average gain of 1.21 per cent, representing a gain of N328 billion within the five hours of trading. The rally helped to moderate equities’ average year-to-date return to -29.08 per cent at the weekend. Aggregate market value of all quoted equities on the NSE regained the N10 trillion mark to close at N10.005 trillion as against its opening value of N9.677 trillion. The All Share Index (ASI), which tracks prices of all quoted equities, also crossed the 30,000 points, rising from 29,311.25 points to close at 30,306.51 points.

    After eight consecutive days of depreciation, Nigerian equities had on Thursday rode on the back of renewed bargain-hunting to halt the bears advance and regain N115 billion out of more than N1 trillion that had been lost in recent days.

    Analysts said they expected investors to remain cautious about Nigerian equities and bonds. According to analysts, the under allotment and higher marginal rate at the December re-opening, when marginal rate was 279 basis points higher on average than the November re-opening, pointed to higher risk perception of the Nigerian market by investors.

    “We expect investors to continue to tread the bond market with caution given future expectation of higher yields while we also see long term investors taking advantage of the current high yield environment in anticipation of future lower yields,” analysts noted.

    Analysts anticipated that rates will moderate further and trade within the 10.0 per cent to 20.0 per cent in the money market. This is based on the expectation that Treasury bills maturity inflow anticipated on Thursday and the Central Bank of Nigeria’s recent policy which barred banks from using their funds to speculate on foreign exchange.

    “We expect this to have a knock on effect on the money market, boosting liquidity and moderating rates on money market instruments,” analysts stated.

    In the foreign exchange market, Afrinvest said the pressure on Naira would continue all through to the New Year.

    Central Bank of Nigeria offered and sold $400 million and $399.91 million at her bi-weekly RDAS auctions last week, $50.2 million higher than the amount sold in previous week at marginal rate of N168 to $1. To halt the speculative activities, the CBN released a circular last Wednesday, paring the foreign exchange trading position of authorized dealers at the close of each business day to 0.0 per cent of shareholders fund from 1.0 per cent. The CBN introduced another demand management tool last Thursday, informing dealers that funds purchased from banks by their customers at the autonomous/interbank foreign exchange market must be utilized within 48 hours from date of purchase.

    “Whilst the cocktail of polices introduced could potentially weed out speculative demand for the greenback, we expect the pressure on the Naira to build into the New Year. Our expectation is based on the observed trend of foreign exchange demand pressure during the yuletide season, and the looming 2015 general elections,” Afrinvest stated.

  • Emerging stocks erase weekly loss

    Emerging stocks erase weekly loss

    Emerging-market stocks climbed for a third day, with the benchmark gauge poised to erase a weekly drop, as Samsung Electronics Co led a rally for technology companies.

    Bloomberg reported that the MSCI Emerging Markets Index added 0.9 percent to 943.19 at 12:10 p.m in New York, set for its steepest three-day advance in 13 months. The gauge has risen 0.5 percent this week to extend a surge in global equities after the Federal Reserve pledged to be patient on raising U.S. interest rates. Russian President Vladimir Putin said the nation can withstand an economic downturn while plunging oil prices undermine the ruble.

    Samsung surged 4.9 percent in Seoul after the Maeil Business Newspaper said it will pay higher dividends. Iron-ore producer Vale SA led a 1.5 percent jump in Brazilian stocks. The ruble strengthened 4 percent against the dollar as Brent crude rebounded from a five-year low. The zloty tumbled on concern the currency crisis battering Russia’s economy may spread to neighboring nations.

    “Brent has stabilized around the $60/barrel level and together with Fed’s comment, the markets have changed the direction completely,” Mika Kannisto, a money manager at FIM Asset Management Ltd in Helsinki, said by e-mail. “EM currencies have started to strengthen.”

    The ruble appreciated for a second time in three days, while the Micex Index sank 1.9 percent after surging 4.5 percent yesterday. Analysts at JPMorgan Chase & Co. raised Russian equities to neutral versus underweight, saying that stock prices already reflect the drop in oil and the ruble.

    A gauge tracking 20 developing-nation currencies advanced for a third day, adding 0.3 percent. The Indonesian rupiah and Turkish lira climbed 0.5 percent against the dollar.

    Poland’s zloty retreated 0.3 percent against the euro to the weakest level since September 2013. Romania’s BET index jumped 1.8 percent as developed European stocks extended gains amid a global rally. Hungary’s BUX index climbed 1.1 percent. Nigeria’s stock exchange added 3.4 percent.

    The Ibovespa gained for the second time in six days. Vale increased 6.3 percent. Petroleo Brasileiro SA, Brazil’s state-run oil producer, jumped 1.9 percent.

    MSCI’s developing-nation gauge has dropped 6 percent this year and trades at 11 times projected 12-month earnings, data compiled by Bloomberg show. The MSCI World Index is up 3.1 percent and is valued at a multiple of 15.5.

    Nine out of 10 industry groups in the emerging-markets measure rose as a gauge of technology companies jumped 2.8 percent, the most since July 2013.

    Samsung Electronics, the world’s biggest mobile-phone maker, surged the most since Nov. 27. The company said after the market close it’s considering raising its 2014 full-year dividend by 30 percent to 50 percent. South Korea’s Kospi index climbed 1.7 percent, ending a four-day loss.

  • Foreign investors worry over exit point

    Foreign investors worry over exit point

    Foreign investors in Nigeria are concerned that measures taken by the central bank to prevent speculation against the falling naira will hinder their ability to sell investments in the country.

    “The reality is that if you have $100 million dollars invested in Nigeria, in the current environment it would probably take you a year to source that foreign exchange,” Samir Gadio, head of African strategy at Standard Chartered Plc, said by phone from London. “Some people would argue that the lack of foreign-exchange liquidity these measures cause could implicitly be compared to capital controls, although they’re not formally.”

    The Central Bank of Nigeria issued a circular on its website yesterday that any dollars bought from banks in the interbank market had to be used within 48 hours or sold back to the Abuja-based regulator. This followed a rule that cut banks’ maximum foreign-exchange net-open position at the end of each business day to zero from 1 percent of shareholder funds, which brought trading to a near halt.

    Bloomberg reported that the naira gained 0.7 percent to 183.55 per dollar as of 1:52 p.m. in Lagos. There were only six trades between 7 a.m. and 12:30 p.m., compared with almost 700 in the same period a week earlier, according to data compiled by Bloomberg. The currency has slumped 11 percent this quarter as Africa’s biggest oil producer, which derives 95 percent of export earnings from the commodity, struggles to deal with Brent crude prices collapsing to about $60 a barrel from over $111 in June.

    The central bank’s measures are temporary and investors can still enter and exit Nigeria “very freely,” Ibrahim Mu’azu, a spokesman for the regulator, said.

    “These measures are not capital controls,” Mu’azu said by phone from Abuja. “When the market stabilizes, they can be reversed.”

    The central bank could be forced to devalue its target exchange rate of 168 naira per dollar, plus or minus 5 percent, before elections in February, according to Ridle Markus, an Africa strategist at Barclays Plc’s Absa Capital unit.

    “Our estimates show that Nigeria loses potential average annual export proceeds of $740 million for every one dollar decline in oil prices,” Markus said by phone from Johannesburg. “That’s huge. The extent of foreign-exchange measures isn’t a surprise. It suggests the risk of devaluation has increased given the low oil prices. They’d want to avoid that for now, but I think it’s unavoidable.”

  • Shell MD joins Julius Berger’s board

    Shell MD joins Julius Berger’s board

    Managing Director, Shell Petroleum Development Company (SPDC) & Chairman, Shell Companies in Nigeria, Mr Mutiu Sunmonu,  has been appointed as a non-executive director of Julius Berger Nigeria Plc with effect from January 1, 2015.

    With a BSc. first class in Mathematics & Computer Science in 1977, Mutiu has over 32 years of professional, managerial and leadership experience garnered while working with Shell Petroleum Development Company.

    He started his career as a computer programme and business analyst with Shell Petroleum Development Company (1978 – 83) before becoming a senior EDP Auditor and Project Manager –EMA300 also in the same company (1983 -1989). From 1990 – 1993, he moved to Shell UK Expro, Aberdeen where he became the information planner/portfolio consultant. Other notable positions he occupied while working with Shell Petroleum include- Head IT Infrastructure Services (1993 – 1997), Area Production Manager (1997 – 1999), Asset Manager, Southern Swamp Area – SPDC of Nigeria (1999 -2001), Regional Business Adiver – Shell International, The Huge (2001 -2003), GM Production –Eastern Division – 2003, Director, Corporate Affairs (2005-2006) and Production Director/Managing Director –SPDC (2006 -2008).

  • Investors stake N46.5b on equities amidst recovery

    Investors stake N46.5b on equities amidst recovery

    The Nigerian stock market made a latter-day recovery last week to halt the gripping bearishness that had pervaded the market for eight days. But the gain of N443 billion within two days of recovery on Thursday and Friday could not cover the depreciation in the previous three days. Equities still closed the week with a loss of N151 billion, representing average week-on-week depreciation of 1.49 per cent.

    Aggregate market value of all quoted equities on the Nigerian Stock Exchange (NSE), which had opened last week at N10.156 trillion, closed the week at N10.005 trillion. The All Share Index (ASI), the composite value-based index that doubles as benchmark for the stock market and country index for Nigeria, dropped from its week’s opening index of 30,763.38 points to close the week at 30,306.51 points.

    Driven by renewed bargain-hunting and cross deals, aggregate turnover was above average at 5.41 billion shares worth N46.47 billion in 22,986 deals. In the previous week, turnover stood at 1.81 billion shares valued at N28.918 billion in 20,677 deals.

    Financial services sector was the most active sector with 4.99 billion shares valued at N37.07 billion traded in 13,641 deals; representing 92.26 per cent and 79.77 per cent of the total equity turnover volume and value respectively. Conglomerates sector followed with a turnover of 186.25 million shares worth N723.491 million in 1,400 deals. Consumer goods sector placed third with 92.022 million shares worth N4.550 billion in 3,784 deals.

    The trio of Union Bank of Nigeria Plc, FBN Holdings Plc and Transnational Corporation of Nigeria Plc were the most active, accounting for 3.96 billion shares worth N29.09 billion in 4,493 deals, representing 73.24 per cent and 62.59 per cent of the total equity turnover volume and value respectively.

    Also, a total of 28,556 units of Exchange Traded Products (ETPs) valued at N531,541 were traded in 21 deals compared with a total of 1,299 units valued at N452,196 traded in 21 deals two weeks ago. A total of 9,000 units of FGN bonds valued at N9.849 million were executed in 5 deals compared with a total of 800 units valued at N825,011 transacted last week in 1 deal.

    Price movement analysis showed that 23 equities appreciated during the week, higher than 10 equities that appreciated in the preceding week. However, 51 equities depreciated, lower than 68 equities that declined in the previous week. One hundred and twenty three equities remained unchanged, higher than 119 that closed flat in earlier week.

  • EMEA Finance lauds Access Bank’s capital markets activities

    EMEA Finance lauds Access Bank’s capital markets activities

    The publisher and chief executive, EMEA Finance Magazine, Christopher Moore has commended Access Bank Plc for its impressive dealings in the capital market.

    This was done at the EMEA Finance award ceremony which was held recently in London. At the ceremony, Access Bank, which was nominated in a keenly contested category, emerged victorious as the Best Local Bank in Africa.

    While presenting the award to the bank, Christopher Moore said Access Bank’s interim results show impressive growth not just in income and profit, but also in the bank’s loan portfolio and deposit base.

    He said the bank’s profile underscored its strong management team and business.

    Tim Burke, editor of EMEA Finance Magazine said Access Bank was also considered because of its impressive capital markets activity, which includes the bank’s second international bond issuance raising $400 million and its upcoming rights issue.

    “Access Bank competes in a very tough market, Nigerian banks are among the most innovative and dynamic in Africa, and in many other areas are global leaders and fast adopters. It is a pleasure to recognize Access Bank as our Best local bank for 2014,” Burke said.

    Receiving the award on behalf of the bank, head, brand and strategic management, Access Bank Plc, Amaechi Okobi thanked EMEA Finance magazine for recognizing and celebrating the humble dealings of the bank.

    “This award is a testament to the proactive and innovative approach to banking that Access Bank has adopted. While many might see it as a call to celebrate, we see it as a call to push further. Our promise is to deliver excellent services with lightning speed and on a secured platform and we will not disappoint,” Okobi said.

  • Equities crash to lowest prices as investors lose N814b

    Equities crash to lowest prices as investors lose N814b

    Several equities open trading today at the Nigerian Stock Exchange (NSE) at their lowest prices in a year as quoted stocks lost more than N814 billion in five straight days of losses last week. At least a quarter of companies quoted on the stock market closed weekend at their lowest prices or around their lows. With another quarter stagnated at their nominal prices during the period, the continuing downtrend and the emergence of new lows for several stocks highlighted the grim market situation at the stock market.

    Several leading stocks such as UAC of Nigeria, Guinness Nigeria, National Salt Company of Nigeria (Nascon), Seplat Petroleum Development Company, Nigerian Aviation Handling Company, Okomu Oil Palm and UACN Property Development Company among others are now trading at their lowest prices in a year.

    All key indices at the NSE highlighted the widespread bearishness across the sectors. The All Share Index (ASI), the common value-based index that tracks prices of all quoted companies, indicated a week-on-week average decline of 7.42 per cent. It closed weekend at 30,763.38 points as against 33,228.29 points recorded as opening index for the week.

    Aggregate market value of all quoted equities also dropped from the week’s opening value of N10.970 trillion to close at N10.156 trillion, indicating a loss of N814 billion.

    With the decline last week, average year-to-date return at the stock market worsened with the ASI indicating a year-to-date return of -25.57 per cent. The NSE 30 Index, which tracks the 30 most capitalised stocks, showed year-to-date return of -26.73 per cent. The NSE Banking Index carried a return of -27.66 per cent. Other returns included NSE Insurance Index, -7.61 per cent; NSE Consumer Goods Index, -28.34 per cent; NSE Industrial Goods Index, -27.16 per cent and NSE Lotus Islamic Index, which recorded the highest average loss of -30.57 per cent. The NSE Oil & Gas Index is the only one with a gain of 11.45 per cent.

    With nearly seven decliners for every advancer, 10 equities appreciated during the week compared with 68 stocks that depreciated. One hundred and nineteen stocks remained unchanged, nearly half of them stunted at their nominal prices.

    Total turnover last week stood at 1.81 billion shares worth N28.92 billion in 20,677 deals. The financial services sector was the most active with 1.37 billion shares valued at N13.78 billion traded in 11,742 deals; representing 75.69 per cent and 47.66 per cent of the total equity turnover volume and value respectively. The consumer goods sector recorded a turnover of 137.12 million shares worth N9.37 million in 3,583 deals. Conglomerates sector placed third on the activity chart with a turnover of 93.13 million shares worth N567.17 million in 1,256 deals.

    The trio of Guaranty Trust Bank Plc, FBN Holdings Plc and Diamond Bank Plc were the most active stocks and jointly accounted for 624.39 million shares worth N9.19 billion in 5,090 deals, contributing 34.50 per cent and 31.77 per cent to the total equity turnover volume and value respectively.

    Also traded during the week were a total of 1,299 units of Exchange Traded Products (ETPs) valued at N452, 196 executed in 21 deals. Similarly, a total of 800 units of FGN bonds valued at N825, 011 were executed in a deal.

  • Increasing upside potential for May & Baker

    Increasing upside potential for May & Baker

    The recent certification of May & Baker Nigeria’s production processes to be of World Health Organisation (WHO)’s current Good Manufacturing Practice (cGMP) opens a vast opportunity for the healthcare company

    May & Baker Nigeria Plc achieved another milestone recently with the issuance of ‘current Good Manufacturing Practice (cGMP)’ certificate of the World Health Organisation (WHO) to the healthcare company. The first pharmaceutical company to be certified by the International Standard Organisation (ISO), the cGMP was another pace-setting achievement by the healthcare company.

    The cGMP affirms that May & Baker Nigeria is a pharmaceutical manufacturing company with adequate facilities and processes that meet global standards. The announcement, which was formally communicated to May & Baker Nigeria recently by the world health ruling body, caps a deliberate and sustained effort by the company to seek international accreditation and certification for its production processes and products.

    The road to the WHO GMP certification began as far back as 2008 when May & Baker commenced the construction of a world class manufacturing facility at Ota, Ogun State. The facility, which was commissioned in 2011 by President Goodluck Jonathan, was designed to meet all requirements of international pharmaceutical manufacturing best practice, from civil works to equipment installations, quality assurance, input supply and production processes.

    In 2012, the company formally applied to the WHO for GMP certification. May & Baker Nigeria’s Pharmacentre was inspected by WHO experts four times between 2012 and 2014 in the course of mandatory and advisory inspections. In all inspections, positive reports were made about the Pharmacentre, while improvements to processes, documentation and further training were carried out. In September, 2014, the WHO finally gave a nod to the company as having met the requirements for GMP certification.

    The certification opens a vast opportunity for global drug contract manufacturing to May & Baker, whose Ota, Ogun State-based manufacturing complex known as The Pharmacentre was designed and positioned as the most modern pharmaceutical factory in the West African region. Nigerian pharmaceutical firms previously were not in a position to participate in international tenders for medicines against the three pandemics that require WHO prequalification. Health experts identified this as a major constraint on the local supply of medicines, especially anti-retroviral (ARVs) drugs, anti-malarial and anti-tuberculosis agents.

    With another enviable position as the first and only Nigerian company with local vaccine production, the cGMP places May & Baker Nigeria in a better position ahead of other healthcare company to compete effectively for many lines of drugs. May & Baker’s business is already structured to optimize the synergies and cross-selling opportunities in the general healthcare industry. May & Baker operates under three major business units and four subsidiaries. The business units are pharmaceutical manufacturing, beverages and foods. The four subsidiaries included Biovaccines Nigeria Limited, Osworth Nigeria Limited, Servisure Nigeria Limited and Tydipacks Nigeria Limited. Biovaccines is a joint venture with the Federal Government for local production of human vaccines. May & Baker Nigeria meanwhile owns the controlling equity stake in Biovaccines. The vaccine project, when fully operational, is expected not only to save Nigeria huge revenues but also create immense room for revenue and profit growth for May & Baker Nigeria. The three other subsidiaries-Servisure, Osworth and Tydipacks are brand-owning healthcare companies.

    The pharmaceutical manufacturing business runs concurrently from two factory locations-Ikeja, Lagos State and Ota, Ogun state. Based in Ikeja are a liquid manufacturing plant, solid manufacturing plant, an ARV plant and Bectaletam plant. The total capacity for solid medicines in Ikeja is two billion tablets while there is capacity for 19 million bottles of liquid preparations of 60 ml. The new pharmaceutical plant in Ota, the Pharmacentre, has capacity to produce 4.5 billion tablets and 37.5 million bottles of 60 ml liquid preparations annually. Thus, the combined capacity of May & Baker’s pharmaceutical business is in excess of 6.5 billion tablets and 56.5 million bottles of liquid preparations per annum for a range of over 80 products. The beverage business is located in Ikeja and is currently involved in the bottling of Lily table water while the food business produces instant noodles-Mimee Noodles.

    The cGMP is expected to add fillips to the company’s earnings. While it remains under cost pressure due to extended funding for the Pharmacentre, the audited report of the company showed a steady performance. Key extracts of the audited report and accounts of the company for the year ended December 31, 2013 indicated a growth of 12.3 per cent in sales.  Turnover rose from N5.67 billion in 2012 to N6.37 billion in 2013. Gross profit also increased by 9.2 per cent from N2.07 billion to N2.26 billion. However, the company remained under pressures from financing charges, the main downside to the huge new pharmaceutical manufacturing plant, which was financed largely by loans. Finance costs rose by 34.3 per cent to N630.71 million in 2013 compared with N469.63 million in 2012, leading to a negative pre-tax profit of N11 million.

    Already, the company is considering options to reduce its financial leverage and restructure its balance sheet. It plans to raise new equity funds and recapitalize its balance. In a recent review, managing director, May & Baker Nigeria Plc, Mr. Nnamdi Okafor, said the company needs new equity funds to support the long-term growth of its business and reduce the high cost of fund, which has been constraining its profit in recent years.

    He however pointed out that the journey to WHO’s prequalification of products is not yet over as the company would soon commence the next stage which will involve the presentation of specific products for prequalification by WHO.

    He said the company has been receiving several enquiries from prospective clients who want to use its world-class pharmaceutical manufacturing centre for their drug manufacturing adding that the cGMP would encourage more customers.

    “We want to build a company that is strong, stable and globally relevant by setting up strong institutions and strong brands. We have launched May & Baker on the path of sustainable and profitable diversification,” Okafor assured.

    The certification and structural repositioning of its businesses and balance sheet of May & Baker Nigeria enhance the prospects of the company in the expanding healthcare industry. With population of more than 170 million people, Nigeria’s growing population and huge gap between healthcare needs and actual provisions present huge opportunities for companies with extensive capacity for research and capital for investments. Besides, Nigerian healthcare industry has witnessed many landmark changes in recent years including a law that mandates compulsory health scheme for employees and a step-up in the anti-counterfeit and substandard campaign.

  • Equities hit one-year low as bears bite harder

    |It was another day for the bears and they sank deeper into the marrows of the investors. Nigerian equities slumped to one-year low yesterday at the Nigerian Stock Exchange (NSE) as the downtrend at the stock market continued unabated. Investors lost N377 billion with average percentage loss during the five-hour trading session standing at -3.54 per cent.

    With more than four losers for every gainer, the overwhelming bearishness at the market was further evidenced by substantial losses recorded across the sectors. Losses ran into four to three digits as against few points recorded by gainers.

    The downtrend pushed average year-to-date loss at the equities market to -24.84 per cent. With four consecutive losses, the benchmark indices at the NSE slumped to 52-week low. The All Share Index (ASI), the composite index that tracks prices of all quoted equities, dropped from its opening index of 32,203.62 points to close at 31,062.03 points.

    Aggregate market value of all quoted equities slumped to N10.255 trillion compared with its opening value of N10.632 trillion, indicating a loss of N377 billion.

    Market analysts attributed the decline to selling pressure across the sectors as investors scrambled to exit equities and lock up funds in fixed assets.

    “Having sustained four days of consecutive loss with negative 6.5 per cent so far this week, we are of the view that the market for the week will most likely close within the negative territory. We advise investors to tread cautiously in taking opportunistic investment positions in trading sessions ahead as likely market drags at the moment outweigh the positive,” analysts at FSDH Securities noted in a post-trade investment report.

    Nestle Nigeria topped the losers’ list with a drop of N40.77 to close at N774.78. Seplat Petroleum Development Company followed with a drop of N17.09 to close at N324.83. Forte Oil placed third with a loss of N11.50 to close at N218.50. Nigerian Breweries declined by N8.06 to close at N153.25. Mobil Oil Nigeria lost N7.95 to close at N151.05. Guinness Nigeria dwindled by N6.79 to close at N129.06. Dangote Cement dropped by N5.51 to close at N157.99 while Flour Mills of Nigeria declined by N4.72 to close at N43.73 per share.