Bears weigh on Nigerian stocks, as WEMA, Unity Bank plunge

Nigerian stocks on Friday after the battle of the bulls and the bears closed the trading session with the Bear on top. The All-Share Index (ASI) dropped by 0.13% to settle at 38,648.48 index points.

FLOURMILL and REGALINS (+10%) led the gainers for the day, while STSREIT (-9.96%) topped the losers. Performance across sectors was bearish as 3 of the 5 indexes under our coverage trended bearishly.

The banking index led laggards, down by -0.09% as a result of the sell pressures in UNITYBANK (-9.59%) and WEMABANK (-6.15%)

Conversely, the consumer goods index and Insurance closed as the gainer, up marginally by +1.03% and 1.34% respectively.

Top gainers

• REGALINS up 10.0% to close at N0.3
• FLOURMILL up 10.0% to close at N27
• NEM up 9.73% to close at N1.85
• NNFM up 9.71% to close at N5.15
• LIVESTOCK up 9.29% to close at N1.83

Top losers

• SFSREIT down 9.96% to close at N69.3
• UNITYBNK down -9.59% % to close atN0.73
• AFRINSURE down 9.09% to close at N0.22
• SOVRENINS down -7.69% to close at N0.26
• WEMABANK down -6.15% to close at N0.65

Outlook

Bears outperformed the Bulls shown by investors sells off SFSREIT (-9.96%), UNITYBNK (-9.59%) shown today.
Selling pressure intensity can also be linked to the recent movement in the bond market as investors seek liquidity to invest in risk-averse securities.

Also, Nigeria’s currency market is facing an unusual level of FX scarcity, which pushes significant pressure on Nigeria’s local currency.

Nairametrics envisages you seek the advice of a certified financial advisor when choosing stocks to buy.