Investors lose N19.03bn as market opens on negative note

By Kayode Tokede

Trading activities on the Nigerian Exchange Limited (NGX) on Monday opened the new week on a negative note with a decline of 0.10 per cent, following profit-taking in Banking stocks.

In summary, the All-Share Index (ASI) shed 36.49 basis points, representing a decline of 0.10 per cent to close at 38,287.58 basis points, while the overall market capitalisation value lost N19 billion to close at N19.956 trillion.

Sector performance was positive today with the Consumer Goods (+0.52 per cent), Oil and Gas (+0.21 per cent), and Industrial (+0.09 per cent) sectors closing in the green, while the Banking (-0.68 per cent) sector closed negatively.

The market gain was driven by price depreciation in large and medium capitalised stocks amongst which are; Nigerian Enamelware, Eterna, Guaranty Trust Bank, Access Bank and United Bank for Africa (UBA).

However, market sentiment, as measured by market breadth, was positive as 18 stocks gained, relative to 17 losers. Royal Exchange recorded the highest price gain of 9.68 per cent to close at 68 kobo, per share. Regency Alliance Insurance followed with a gain 8.82 per cent to close at 37 kobo and Consolidated Hallmark  Insurance rose by 7.84 per cent to close at 55 kobo, per share.

Sovereign Trust Insurance appreciated by 7.69 per cent to close at 28 kobo, while Japaul Gold and Ventures gained 7.55 per cent to close at 57 kobo, per share. On the other hand, Associated Bus Company led the losers’ chart by 9.76 per cent to close at 37 kobo, per share. Nigerian Enamelware followed with a decline of 9.75 per cent to close at N16.20, while UACN Property Development Company shed 8.43 per cent to close at 76 kobo,  per share.

Jaiz Bank shed 6.45 per cent to close at 58 kobo, while Courteville Business Solutions depreciated by 4.76 per cent to close at 20 kobo, per share.

Meanwhile, the total volume of trades fell by 19 per cent to 141.146 million units, valued at N1.095 billion, and exchanged in 3,566 deals. Transactions in the shares of UACN Property Development Company topped the activity chart with 17.345 million shares valued at N13.336 million. FBN Holdings (FBNH)  followed with 11.252 million shares worth N81.247 million, while Chams Plc traded 7.920 million shares valued at N1.637 million.

Fidelity Bank traded 7.842 million shares valued at N17.944 million, while Zenith  Bank transacted 7.212 million shares worth N166.08 million.

Analysts at Afrinvest Limited said that “We expect to see cautious trading tomorrow, as investors await CBN’s policy reaction to the recently released GDP and inflation numbers by the end of the MPC meeting.”

According to analysts at Investment One research, “The equities market closed down today due to the losses recorded in the Banking sector.

“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.”