NGX extends woes as market value declines by N197bn

By Motolani Oseni

The equities market of the Nigerian Exchange Limited (NGX) on Thursday further extended its downward trend with a whopping decline of N197 billion in market capitalisation, due to investors’ profits taking in Airtel Africa and 21 other stocks.

Specifically, the value of market capitalisation depreciated by N197 billion to close at N28.255 trillion, while the market All-Share Index (ASI) dropped by 364.31 absolute points, representing a dip of 0.694 per cent to close at 52,411.09 points.

The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are; Airtel Africa, BUA Foods, Conoil, Nigerian Exchange Group (NGXGroup) and Eterna

Market breadth closed negative, with 22 losers versus 12 gainers. Linkage Assurance recorded the highest price gain of 9.80 per cent, to close at 56 kobo, per share. Courteville Business Solutions followed with a gain eight per cent to close at 54 kobo, while Japaul Gold & Ventures appreciated by 6.90 per cent to close at 31 kobo, per share.

Chams Plc went up by 4.17 per cent to close at 25 kobo, while UACN Property Development Company (UPDC) appreciated by 4.08 per cent to close at N1.02, per share. On the other hand, Conoil led the losers’ chart by 10 per cent, to close at N28.80, per share. BUA Foods followed with a decline of 9.97 per cent to close at N53.75, while e-Tranzact International went down by 9.96 to close at N2.44, per share.

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CWG Plc lost 9.62 per cent to close at 94 kobo, while Eterna shed 6.25 per cent to close at N7.50, per share.

However, the total volume traded rose 12.51 per cent to 211.614 million shares, worth N2.365 billion, and traded in 4,750 deals. Transactions in the shares of Sterling Bank topped the activity chart with 63.662 million shares valued at N97.449 million. Zenith Bank followed with 17.335 million shares worth N382.567 million, while United Bank for Africa (UBA) traded 17.333 million shares valued at N131.852 million.

Transnational Corporation of Nigeria (Transcorp) traded 16.173 million shares valued at N21.035 million, while FBN Holdings (FBNH) transacted 10.295 million shares worth N101.015 million.

On market outlook, analysts at GTI Securities Limited said “The Nigerian equity market closed bearish, as the Federal Reserve’s raised its benchmark interest rates by 0.75 per cent, its most aggressive hike since 1994. We expect cautious trading and profit-taking to continue tomorrow in the domestic market.”