Equities market of NGX depreciates further by N58bn

By Kayode Tokede

Transactions on the Nigerian Exchange (NGX) Limited on Tuesday closed in the negative region to extend the previous day bearish sentiment, as the market lost N58 billion on the back of sell-down in some high capitalised stocks.

In summary, the All-Share Index (ASI) declined by 110.72 basis points, representing a decrease of 0.29 per cent to close at 38,601.83 basis points. While the overall market capitalisation value lost N58 billion to close at N20.202 trillion.

Sector performance was negative with the Consumer Goods (-0.37 per cent), Oil & Gas (-0.20 per cent) and Industrial (-0.05 per cent) sectors all closing down today, while the Banking (+0.03 per cent) sector closed in the green.

The market loss was driven by price depreciation in large and medium capitalised stocks amongst which are; MTN Nigeria Communications (MTNN), Guinness Nigeria, Chemical & Allied Products (CAP), Julius Berger Nigeria, and NCR Nigeria.

As measured by market breadth, market sentiment was negative, as 18 stocks lost relative to 15 gainers. Japaul Gold and Ventures recorded the highest price gain of 8.70 per cent to close at 75 kobo, per share.

Nigerian Aviation Handling Company (NAHCO) followed with a gain 7.39 per cent to close at N2.18, while Sterling Bank rose by 7.14 per cent to close at N1.80, per share.

Stanbic IBTC Holdings gained by 7.14 per cent to close at N1.80, while Chams Plc gained five per cent to close at 21 kobo, per share.

On the other hand, Guinness Nigeria led the losers’ chart by 9.91 per cent to close at N24.10, per share.

Tripple Gee & Company followed with a decline of 9.72 per cent to close at 65 kobo, while NCR Nigeria shed 9.68 per cent to close at N2.52, per share.

Champion Breweries lost 9.09 per cent to close at N2.00, while Jaiz Bank shed 7.69 per cent to close at 60 kobo, per share.

However, the total volume of trade increased by 7.6 per cent to 208.81 million units, valued at N2.91 million, and exchanged in 4,013 deals.

Transactions in the shares of Fidelity Bank topped the activity chart with 38.565 million shares valued at N96.177 million.

Guaranty Trust Bank  followed with 32.832 million shares worth N951.301 million, while FBN Holdings (FBNH) traded 16.865 million shares valued at N123.916 million.

UAC of Nigeria (UACN) traded 14.455 million shares valued at N137.556 million, while Zenith Bank transacted 10.944 million shares worth N239.53 million.

Analysts at Investment One research said, “The equities market closed down today due to the losses recorded in the most sectors.

“Going forward, we expect investor’s sentiments to be swayed by the search for real positive returns and developments in the interest rate space.

“We reiterate that this may be a great period to pick up some quality names with a medium to long-term investment horizon.”

Also, analysts at Afrinvest Limited said that “We are not optimistic of significant gains in the market this week as investor sentiment remains sub-par.”