Equities investors lose N1.822trn in bearish trading


By Temitope Adebayo

The domestic equities market yesterday began the week on a bearish note as selloffs on Dangote Cement Plc and 36 others dragged the overall market capitalisation down by N1.822 trillion.

As a result, the All-Share Index (ASI) fell by 3,329.55 points, representing a decline of 3.15 per cent to close at 102,393.23 points.

Accordingly, investors lost N1.822 trillion in value as market capitalisation declined to N56.028 trillion.

The downturn was driven by price depreciation in large and medium-capitalised stocks amongst which are; Dangote Cement, MTN Nigeria Communications (MTNN), Nigerian Breweries, Nigerian Exchange Group and Dangote Sugar Refinery.

On the market outlook for this week, United Capital Plc said: “As negative sentiments continue to outweigh the positives in the short-term, we expect broad-based bearish sentiments to thrive in the short-term.

“We foresee activities in the fixed-income market to stand as a key demotivator for equities investments this week. The uncertainty and overall market expectation of a HIKE in the Monetary Policy Committee (MPC) at this meeting (to be held on February 26 and 27, 2024) may underpin a cautious investment approach toward risk assets.

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“Given the tremendous value that still exists in the equities market, on the back of currently undervalued stocks particularly the banking stocks (which are currently trading beyond the oversold region), we still expect background bargain hunting activities, albeit overshadowed by the short-term negative sentiment, pending the release of a full year, 2023 financial results and corporate actions from top-tier banks, and other corporates.”

Investor sentiment, as measured by market breadth closed negative as 18 stocks advanced, while 37 declined. Juli emerged the highest price gainer of 9.52 per cent to close at N1.61, per share. DAAR Communications followed with a gain of 8.64 kobo to close at 88 kobo, while SUNU Assurance advanced by 6.74 per cent to close at N1.90, per share.

Associated Bus Company increased by 6.67 per cent to close at 96 kobo, while Nigerian Aviation Handling Company (NAHCO) added 5.86 per cent to close at N0.70, per share. On the other side, MTNN and Dangote Cement led others on the losers’ chart with 10 per cent each to close at N247.50 and N686.70 respectively, while Nigerian Exchange Group followed with 9.76 per cent to close at N22.20, per share.

NEM Insurance lost 9.74 per cent to close at N6.95, while Tantalizers depreciated by 9.52 per cent to close at 38 kobo, per share.

The total volume of trades decreased by 20.05 per cent to 273.851 million units, valued at N7.439 billion, and exchanged in 9,688 deals. Transactions in the shares of Guaranty Trust Holding Company (GTCO) led the activity with 28.846 million shares worth N1.126 billion.

Transnational Corporation (Transcorp) followed with an account of 20.135 million shares valued at N275.931 million, while Access Holdings traded 15.900 million shares valued at N359.450 million.

FBN Holdings (FBNH) traded 15.866 million shares worth N450.742 million, while Zenith Bank traded 15.839 million shares worth N568.046 million.

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