Nigerian bourse started the first trading week unsurprisingly on a bearish note.
The All Share Index (ASI) opened the week on a negative note by -0.75% to close at 34,774.08 points.
A total volume of 668.5 million units of shares, valued at N7.84billion exchanged hands in 10,319 deals.
FBNH was the most traded shares by volume and value at 94.0million units and N2.50billion respectively.
The market breadth index was negative with 43 losers against 11 gainers. BOCGAS (+9.92%) led the gainer’s chart today, while DANGSUGAR (-9.91%) was the top loser.
Across sectors, four of the indexes under our coverage closed south. The Banking and Consumer Goods sectors recorded the largest decline depreciating by -4.43% and -3.75%. Likewise, the Oil & Gas and Insurance sectors trailed by -3.09% and -1.71% respectively.
Nigerian bourse ended the first trading session on a negative note, amid soaring crude oil prices. The reduced influence of Foreign portfolio investors is partly responsible for the reduced liquidity relatively seen in the Nigerian bourse YTD, especially in the era of COVID-19, amid the bullish run prevailing relatively as local investors cash out some of their gains.
Darlington Morsi Onyemaka, Co-Founder of Quba Exchange, attributed such rationality to treatment for securities classified in the MSCI Nigerian index, as highly attributed to the low level of liquidity recorded in the Nigerian financial market, which has been recently affected by the COVID-19 crisis, as the index maintenance methodology used by MSCI requires liquidity screening in a bid to ensure efficiency and replicability of the MSCI indexes.
Selling pressure by top NSE30 Stocks weighed heavily on the Sub Saharan Exchange. Nairametrics envisage caution when buying, as recent price action anticipates more profit-taking moves.