Equities market closes bearish sentiments as investors lose N3bn
By Philemon Adedeji
Opening the week yesterday, the equities market on the Nigerian Exchange Limited (NGX) closed on bearish sentiments caused by Gains in BUAFOODS (+4.21 per cent) which offset losses in Zenith BanK (-3.10 per cent), Guaranty Trust Holding Company (GTCO) (-1.89 per cent) and Wapco Insurance (-1.52 per cent).
Respectively, the NGX All-Share Index (ASI) shed 6.14 basis points representing 0.01 per cent to close at 55,788.37 basis points from 55,794.51 basis points reported in the previous day.
As a result, the ASI’s year-to-date (YTD) return fell to 8.85 per cent, while the market capitalisation shed N3.34 billion to close at N30.391 trillion.
The downturn in price caused by price depreciation in medium and large capitalised stocks which are, NGXGROUP, MPFMCRFB, Courtville Business Solution and 18 others.
The breakdown of yesterday’s trading activities showed trade turnover settled lower relative to the previous session, with the value of transactions down by 70.36 per cent.
The trade volume increased to 179,028,155 million share worth N2.547 billion were exchanged in 4,296 deals.
NGXGROUP led the volume and value charts with 38.15 million units traded in deals worth N994.55 million.
Analysts at Coronation Research said, “Global markets have been up and down this year, something that is clear when we look at the S&P 500 and the Nasdaq indices in the US. As we wrote two months ago.
“Global markets will at some point anticipate the easing of US policy rates and perform again. Yet recent news of a strengthening US economy is seen as bad for US inflation and therefore bad for US policy rates, which in turn depresses equity markets. Later this year, we believe, matters will resolve themselves as US inflation moderates, but for now investors need to be patient.”
On the price movement board, 12 stocks dominated the gainers, while on the losers chart 21 stocks were recorded.
On the performance table, UPL came as the most price gainer which appreciated by 9.89 per cent to close at N2.00 per share, Computer Warehouse Group which followed rose by 7.69 per cent to close at N0.98 per share, while Multiverse and Mining Evaporation which recorded as the last third gainer grew by N3.75 per share.
Buafoods went up by 4.21 per cent to close at N99 per share, while Regalins Insurance which recorded as the last fifth gainer rose by 3.45 per cent to close at N0.30 per share.
However, on the losers table, NGXGROUP led as the highest price loser which depreciated by 9.72 per cent to close at N26 per share, followed by NPFMCRFB which lost 8.47 per cent to close at N1.73 per share, while Courtville Business Solution went down by 6.25 per cent to close at N0.45 per share.
Linkages Assurance which recorded as the last fourth loser shed 4.35 per cent to close at N0.44 per share, while Royalex Exchange which recorded as the last fifth loser dropped by 3.95 per cent to close at N0.73 per share.
Transaction in the shares of NGXGROUP topped the activities chart during the day, exchanging 38.153 million shares worth N9.945 million, followed by Transcorp Corporation which traded 19.734 million shares valued at N26.601 million, while Sterling Bank traded 15.885 million shares exchanging N23.080 million.
Zenith Bank accounted 14.834 million shares worth N374.262 million, while United Bank of Africa transacted 13.694 million shares valued at N112.480 million.
