Equities market of NGX drops by N167bn over investors-taking
By Kayode Tokede
The equities market of Nigerian Exchange Limited (NGX) on Thursday closed transaction on a negative note with a decline of N167 billion to extend bearish sentiment to three consecutive trading sessions.
In summary, the All-Share Index (ASI) decreased by 319.08 basis points, representing a drop of 0.81 per cent to close at 39,114.73 basis points while the overall market capitalisation value lost N167 billion to close at N20.470 trillion.
Sector performance was broadly positive today with the Oil and Gas (+6.48 per cent), Banking (+1.55 per cent) and Consumer sector (+0.34 per cent) sectors all closing in green, while the Industrial sector (-1.19 per cent) closed negative.
The bearish sentiment was sustained on price depreciation in large and medium capitalised stocks amongst which are; MTN Nigeria Communications (MTNN), Dangote Cement, BOC Gases, Red Star Express and SCOA Nigeria.
Analysts at Afrinvest Limited said that “We expect the market to close in the red for the week.”
However, investor sentiment as measured by market breadth was positive, as 25 stocks gained, relative to 20 losers.
Conoil and Courteville Business Solutions recorded the highest price gain of 10 per cent each to close at N18.70 and 22 kobo, respectively, while Seplat Petroleum Development Company (SEPLAT) followed with a gain 9.99 per cent to close at N604.40, per share.
Linkage Assurance rose by 8.62 per cent to close at 63 kobo, while Access Bank appreciated by 5.19 per cent to close at N8.10 per share.
On the other hand, BOC Gases led the losers’ chart by 9.99 per cent, to close at N12.25, per share. Livestock Feeds followed with a decline of 9.90 per cent to close at N1.73, while SCOA Nigeria shed 9.66 per cent to close at N2.15, per share.
Red Star Express shed 9.59 per cent to close at N3.11, while Regency Alliance Insurance depreciated by 9.38 per cent to close at 29 kobo, per share.
The total volume of trades increased by 15.2 per cent to 403.512 million units, valued at N4.810 billion, and exchanged in 4,342 deals.
Transactions in the shares of Access Bank topped the activity chart with 105.868 million shares valued at N844.210 million. NEM Insurance followed with 38.679 million shares worth N77.336 million, while FBN Holdings (FBNH) traded 35.406 million shares valued at N258.661 million.
Zenith Bank traded 29.432 million shares valued at N641.83 million, while Fidelity Bank transacted 22.310 million shares worth N49.602 million.
“The equities market closed down today due to losses in Dangote Cement and MTN Nigeria.
“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,” analysts at InvestmentOne research said.
