NGX extends losing streak as market cap sheds N551bn

By Motolani Oseni

Equities market of the Nigerian Exchange Limited (NGX) yesterday closed the first trading session for this week in red, extending its losing streak for the fifth consecutive session as the market capitalisation declined by N551 billion to close at N27.363 trillion.

Opening the week, the local bourse shed almost 2.00 per cent, as the benchmark index closed 1.97 per cent weaker- the biggest single-day decline since 06 April 2020 – to close at 50,756.74 points, the lowest point since 04 May.

Analysis of the market’s performance showed that the downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are; Dangote Cement, Flour Mills of Nigeria, Lafarge Africa, Fidson Healthcare and FBN Holdings (FBNH).

Market breadth closed negative, with 31 losers versus seven gainers. Jaiz Bank recorded the highest price gain of 5.32 per cent, to close at 99 kobo, per share. Regency Alliance Insurance followed with a gain 3.70 per cent to close at 28 kobo, while Japaul Gold and Ventures appreciated by 3.33 per cent to close at 31 kobo, per share, DailyTimes gathered.

Zenith Bank went up by 2.80 per cent to close at N22.00, while Nigerian Aviation Handling Company (NAHCO) appreciated by 2.63 per cent to close at N7.80, per share. On the other hand, Dangote Cement and Union Bank of Nigeria (UBN) led the losers’ chart by 10.00 per cent each to close at N249.30 and N5.40 respectively, while Livestock Feeds followed with a decline of 9.77 per cent to close at N1.20, per share.

International Breweries lost 9.60 per cent to close at N5.65, while Flour Mills of Nigeria shed 8.57 per cent to close at N32.00, per share.

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However, the total volume traded rose 43.04 per cent to 345.005 million shares, worth N3.073 billion, and traded in 5,075 deals. Transactions in the shares of FCMB Group topped the activity chart with 177.592 million shares valued at N668.970 million. United Bank for Africa (UBA) followed with 29.499 million shares worth N221.187 million, while Access Holdings traded 21.965 million shares valued at N206.365 million.

FBNH traded 12.574 million shares valued at N113.966 million, while Transnational Corporation of Nigeria (Transcorp) transacted 11.565 million shares worth N14.334 million.

Commenting, analysts at GTI Securities Limited stated that “Equity market resumes the week negative, as the bearish trend persists. We expect cautious trading and profit-taking to continue in the domestic market.”