NGX drops by N193bn amid increased sell pressure
By Kayode Tokede
Transactions on the equities market of Nigerian Exchange Limited (NGX) on Wednesday closed in the negative region to extend the previous day bearish sentiment, as All Share Index (ASI) shed 0.92 per cent.
The price depreciation was sustained by sell-off in Stanbic IBTC Holdings and 21 other stocks.
The All-Share Index (ASI) declined by 367.97 basis points, representing a dip of 0.92 per cent to close at 39,433.81 basis points, while the overall market capitalisation value lost N193 billion, representing a decrease of 0.93 per cent to close at N20.637 trillion.
The discrepancy between the ASI and market capitalisation was a result of price adjustment of MTN Nigeria Communications (MTNN) and Seplat Petroleum Development Company (SEPLAT) shares.
Sector performance was broadly negative today with the Banking (-1.69 per cent), Consumer sector (-0.52 per cent) and Oil and Gas (-0.15per cent) sectors all closing negative, while the Industrial sector (+0.29 per cent) closed positive.
The market loss was driven by price depreciation in large and medium capitalised stocks amongst which are; Stanbic IBTC Holdings, Unilever Nigeria, Guaranty Trust Bank, Zenith Bank and Julius Berger.
Analysts at Afrinvest Limited said that “We expect the market performance to remain bearish in the next trading session, as investors continue to take position in the fixed income space due to rising yields.”
Investor sentiment as measured by market breadth declined, as 16 stocks advanced while 22 declined. Lasaco Assurance recorded the highest price gain of 9.62 per cent to close at N1.71, per share. Linkage Assurance followed with a gain 9.43 per cent to close at 58 kobo, while Caverton Offshore Support Group went up by 9.09 per cent to close at N1.92, per share.
Sterling Bank rose by 8.11 per cent to close at N1.60, while Regency Alliance Insurance gained 6.67 per cent to close at 32 kobo, per share. On the other hand, Stanbic IBTC Holdings led the losers’ chart by 10 per cent to close at N45.00, per share. Computer Warehouse Group followed with a decline of 9.61 per cent to close at N2.07, while Unilever Nigeria lost 8.21 per cent to close at N12.30, per share.
Courteville Business Solutions lost eight per cent to close at 23 kobo, while International Breweries shed 7.02 per cent to close at N5.30, per share.
The total volume of trades fell by 18 per cent to 349.559 million units, valued at N3.501 billion, and exchanged in 4,554 deals. Transactions in the shares of FBN Holdings (FBNH) topped the activity chart with 71.285 million shares valued at N523.784 million. Access Bank followed with 40.879 million shares worth N309.952 million, while Ekocorp Plc traded 40 million shares valued at N235.999 million.
Zenith Bank traded 25.026 million shares valued at N544.352 million, while United Bank of Africa (UBA) transacted 18.047 million shares worth N130.313 million.
According to analysts at Investment One research, “The equities market closed down today due to losses in most sectors and MTNN.
“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.”
