News of GDP Contraction Depresses Equity, index drop 0.37%

News of GDP Contraction Depresses Equity, index drop 0.37%
Oladejo Amos
Trading in equities closed on a negative note on the Nigerian Stock Exchange on Monday following the release of a contraction in the Gross Domestic Product, GDP, for the period ended first quarter of 2016.
The All Share Index depreciated 0.37 per cent to close at 27,015.97 points, while market capitalization N35 billion to close at N9.28 trillion.
The All Share Index closed at 27,129.41 points on Friday, more than 20 per cent above a three-year-low in mid-January.
The measure fell for the first time in four days on Monday, dropping 0.6 per cent to 26,978.6 points, remaining in bull-market territory.
The market has gained 7.7 per cent this month, compared with a six per cent loss for the MSCI Emerging Markets Index, after President Muhammadu Buhari signed a record budget in early May.
Head of equity research at Chapel Hill, Tajudeen Ibrahim, said, “Nobody really expected a contraction. It came as a shock and the market’s responding to that on Monday.
“Beforehand, local investors were responding positively to news of the budget and in anticipation that there would be a move on the currency.”
Stanbic IBTC Bank led the gainers’ table with N1.53 or 10.19 per cent to close at N16.54 per share, followed by DN Meyer Plc with six kobo or 8.22 per cent to close at 79 kobo per share.
Fidson Healthcare Plc added 10 kobo or five per cent to close at N2.10 per share, while Continetal Insurance Plc gained five kobo or 4.85 per cent to close at N1.08 per share.
Dangote Sugar Plc rose 30 kobo or 4.76 per cent to close at N6.60 per share, while NAHCO Plc appreciated 20 kobo or 4.59 per cent to close at N4.56 per share.
Conversely, PZ Cussons Plc depreciated N1.14 or 4.97 per cent to close at N21.81 per share, while Union Dicon Salt Plc dropped 65 kobo or 4.94 per cent to close at N12.52 per share.
Zenith Bank Plc dipped 78 kobo or 4.89 per cent to close at N15.17 per share, while Portland Paints Plc declined 10 kobo or 4.85 per cent to close at N1.96 per share.
Ikeja Hotel Plc shed 10 kobo or 4.74 per cent to close at N2.01 per share, while Mansard Insurance Plc lost 10 kobo or 4.74 per cent to close at N2.01 per share.