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The sustained bearish trading at the stock market has led to a decline by two per cent per cent in the past three days.
Specifically, the Nigerian Stock Exchange (NSE) All-Share Index (ASI) fell from 38,278.55 to 37,499.07, while market capitalisation declined from N13.866 trillion to N13.584 trillion.
The bears’ strong grip on the market led to a marginal growth of 0.09 per cent in the first half of the year. And since the second half began on Monday, the market has remained downbeat, leading to 2.0 per cent. Yesterday accounted for 0.30 per cent of the decline as 24 stocks lost value compared with 21 that added value.
Commenting on the market performance, analysts said selling pressure across counters were sustained, as investors continued to sell down on large cap stocks across the market.
“However, the losses were moderated by the buying pressures across the banking sector, as the favoured counters within the sector topped the value and volume charts for the day,” they said.
Forte Oil Plc and MCNichols Plc led the price losers with 10 per cent apiece trailed by Omoluabi Mortgage Bank Plc that shed 9.3 per cent. Conoil Plc went down by 8.3 per cent, just as Caverton Offshore Support Group Plc lost 8.2 per cent.
Market analysts said lack of information from Forte Oil Plc regarding its planned business restructuring was weakening demand for the stock.
According to a stockbroker, after shareholders approved the proposal, nothing has been heard on the issue.
The shareholders had approved the company’s to restructure its business by divesting its upstream services , power generating businesses in Nigeria and downstream business in Ghana.
“This divestment will reduce finance cost in the group significantly and increase distributable earnings for the benefit of the shareholders. The finance cost attributable to the businesses to be divested stood at N2.7 billion and N2.2 billion for the year ended 31st December 2016 and the year ended 31st December 2017 respectively. The proceeds of the divestment initiative will also enable your company to compete more favourably and achieve the planned expansion of the business for increased market share,” Forte Oil had explained.
However, operators said nothing has been heard from the company after the approval by the shareholders in May.
Meanwhile, May & Baker Nigeria Plc led the price gainers with 9.7 per cent, trailed by FCMB Group Plc. Japaul Oil & Maritime Services Plc and Skye Bank Plc chalked up 9.0 per cent each.
