Investors lose N6.82bn amid positive equities market breadth

By Kayode Tokede

The Nigeria Exchange Limited (NGX) equities market closed transactions for Tuesday on a negative note, to halt the seven consecutive gaining streak, as investors took profits from the recently appreciated banking stocks.

In summary, the NGX All-Share Index (ASI) dropped by 13.04 basis points, representing a decline of 0.03 per cent to close at 39,305.48 basis points, while the overall market capitalisation value lost N6.82 billion to close at N20.570 trillion.

Sector performance was broadly positive today with the Consumer Goods (+0.19 per cent), Oil and Gas (+0.03 per cent) and Industrial (+0.01 per cent) sectors all closing positive today while the Banking sector (-0.60 per cent) closed negative.

The market loss was driven by price depreciation in large and medium capitalised stocks amongst which are; Guaranty Trust Bank, University Press, Zenith Bank, Sterling Bank and Honeywell Flour Mill.

However, market sentiment, as measured by market breadth, was positive as 23 stocks gained, relative to 18 losers. Prestige Assurance recorded the highest price gain of 9.52 per cent to close at 46 kobo, per share. Wema Bank followed with a gain 8.77 per cent to close at 62 kobo and Royal Exchange rose by 7.69 per cent to close at 42 kobo, per share.

Champion Breweries appreciated by 7.46 per cent to close at N2.16, while Regency Alliance Insurance gained 7.41 per cent to close at 29 kobo, per share. On the other hand, Consolidated Hallmark Insurance led the losers’ chart by 9.09 per cent to close at 30 kobo, per share. University Press followed with a decline of 8.59 per cent to close at N1.17, while Chams shed 4.55 per cent to close at 21 kobo,  per share.

Honeywell Flour Mill shed 4.44 per cent to close at N1.29, while Sterling Bank   depreciated by 4.38 per cent to close at N1.53, per share.

The total volume of trades decreased by 23.4 per cent to 252.571 million units, valued at N1.773 billion, and exchanged in 3,474 deals.Transactions in the shares of Access Bank topped the activity chart with 57.179 million shares valued at N410.104 million. Transnational Corporation of Nigeria (Transcorp)   followed with 30.818 million shares worth N27.525 million, while Fidelity Bank traded 29.432 million shares valued at N66.795 million.

Guaranty Trust Bank traded 15.891 million shares valued at N496.428 million, while Zenith  Bank transacted 14.778 million shares worth N327.988 million.

Analysts at investment One research stated that, “The equities market closed down today due to loss 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.”

Also, analysts at Afrinvest Limited said “We expect the market to rebound in the next trading session following expected positive earnings release.”