After closing flat on Monday, the Nigerian bourse closed negative on Tuesday speculative trading increased sell pressure across sectors when major market indicators, the All Share Index and Market Capitalisation depreciated by 0.50 per cent each.
The All Share Index lost 157 basis points or 0.50 per cent to close at 31,269.7 points compared to 31,446.4 points recorded on Monday, while Market capitalisation also declined by N60.6 billion to settle at N10.7 trillion as against N10.8 trillion recorded on Monday.
Depreciation in Nigerian Breweries; 4.2 per cent, FBN Holdings; 2.6 per cent, Access Bank; 2.3 per cent, 0.8 per cent and bellwether Dangote Cement; 0.5 per cent further pushed the market in the red region.
Market breadth remained negative just as only 16 stocks gained while 27 stocks declined.
The volume and value of trades however increased by 91.5 per cent to 281.0 million units and 102.7 per cent to N2.9 billion, respectively.
We expect the speculative trading to continue in the market in the next session while attractive valuations should spur interests in value stocks.
As investors continue to speculate, mixed sentiments trail the sectors with most counters closing negative. The services sector had the highest daily loss of 5.9 per cent on the back of decline in Transcorp which recorded 8.6 per cent loss.
The Consumer and Industrial Goods sectors returned 1.0 per cent and -0.5 per cent loss as depreciation in Nigerian Breweries and Dangote Cement weighed down both sectors. The Oil and Gas sector was likewise dragged by loss pulled by Oando leading to a loss of 0.4 per cent daily return.
The Financial Services sector however returned 0.1 percent as appreciation in Zenith Bank; 2.1 per cent and Guaranty Trust Bank; 1.0 per cent pared the losses pulled by FBN Holdings, Access Bank and United Bank for Africa.