Investors lose N98.57bn as sell pressure persists on NGX


By Kayode Tokede

Trading activity on the domestic equities market on Thursday closed negative, as the investors further lost N98.57billion or 0.49 per cent following price decline in Dangote Cement and 20 others.

In summary, the All-Share Index (ASI) decreased by 189.10 basis points, representing a dip of 0.49 per cent to close at 38,044.58 basis points. Similarly, the overall market capitalisation value shed N98.57 billion to close at N19.830 trillion.

Sectoral performance was broadly negative as the Industrial Goods (-1.1per cent), Banking (-0.4per cent), and Insurance (-0.3 per cent) indices declined. The Consumer Goods (+0.1per cent) index was the lone gainer, while the Oil & Gas index was flat.

The market downturn was driven by price depreciation in large and medium capitalised stocks amongst which are; Dangote Cement, Guaranty Trust Bank, MRS Oil Nigeria, Eterna and UAC of Nigeria (UACN).

Analysts at Afrinvest Limited said “We expect the market to close the week in the negative region.”

Investor sentiment as measured by market breadth declined, as 16 stocks advanced while 21 declined. Mutual Benefits Assurance recorded the highest price gain of 7.32 per cent to close at 44 kobo, while Regency Alliance Insurance and Cutix followed with a gain 7.14 per cent each to close at 45 kobo and N2.25, per share.

Consolidated Hallmark Insurance rose by 6.35 per cent to close at 67 kobo, while Champion Breweries gained six per cent to close at N2.12, per share. On the other hand, Sovereign Trust Insurance led the losers’ chart by 10 per cent to close at 27 kobo, per share. Associated Bus Company followed with a decline of 8.11 per cent to close at 34 kobo, while Academy Press lost 7.69 per cent to close at 36 kobo, per share.

Royal Exchange lost 6.33 per cent to close at 74 kobo, while Wapic Insurance shed 5.66 per cent to close at 50 kobo, per share.

However, the total volume of trades increased by 5.5 per cent to 214.172 million units, valued at N1.337 billion, and exchanged in 3,565 deals. Transactions in the shares of Sovereign Trust Insurance topped the activity chart with 27.172 million shares valued at N7.824 million. Mutual Benefits Assurance followed with 17.165 million shares worth N7.104 million, while UACN traded 15.681 million shares valued at N174.308 million.

Transnational Corporation of Nigeria (Transcorp) traded 12.522 million shares valued at N10.775 million, while Sterling Bank transacted 12.220 million shares worth N20.056 million.