Market News

NGX reverses rally as market capitalisation depreciates by N81 billion
Following sell-off in the shares of many consumer and industrial goods companies, the Nigerian Exchange Limited (NGX) halted its seven consecutive days of gains, to reopen on a downturn yesterday, as market capitalisation dipped by N81 billion.

Yesterday, the All-Share Index (ASI) dropped by 154.36 absolute points, representing a decline of 0.38 per cent, to close at 40,714.00 points. Similarly, the market capitalisation dipped by N81 billion to close at N21.215 trillion.

The downturn was driven by price depreciation in large and medium capitalised stocks amongst which are, Nigerian Breweries, BUA Cement, Stanbic IBTC Holdings, Guaranty Trust Holding Company (GTCO) and Guinness Nigeria.

On market performance this week, analysts at United Capital Plc expected the positive performance to be sustained as investors seek out bargains and continued positioning for the third quarter (Q3) earnings season in the equity market.

Analysts at Vetiva Dealings and Brokerage said: “In the absence of block trades, market activity trended down amid a mix of buy and sell-side interests. Tomorrow, we expect trades in the banking space to continue to boost activity levels, while profit taking activities persist.”

However, the market breadth closed at par, recording 17 gainers and 17 losers. NEM Insurance recorded the highest price gain of 9.95 per cent to close at N2.10 kobo, while Champion Breweries and Ecobank Transnational Incorporated (ETI) followed with a gain 9.52 per cent each to close at N2.30 kobo and N6.90 kobo per share.

Royal Exchange rose by 8.77 per cent to close at 62 kobo, while Lafarge Africa gained 4.93 per cent to close at N24.50 kobo.

On the other hand, Sovereign Trust Insurance led the losers’ chart with 8.33 per cent to close at 22 kobo. Nigerian Breweries followed with a decline of 6.06 per cent to close at N46.50 kobo. AIICO Insurance lost 5.26 per cent to close at 90 kobo. University Press lost 5.06 per cent to close at N1.50 kobo while Universal Insurance shed 4.55 per cent to close at 21 kobo, per share.

The total volume of trades decreased by 42.21 per cent to 191.312 million units, valued at N2.590 billion, and exchanged in 4,395 deals. Transactions in the shares of FBN Holdings (FBNH) topped the activity chart with 24.154 million shares valued at N234.249 million.

ETI followed with 19.339 million shares worth N130.358 million, while Chams Plc traded 17.697 million shares valued at N4.226 million.

Zenith Bank traded 12.226 million shares valued at N300.714 million, while GTCO transacted 12.103 million shares worth N343.624 million.

Source:© Copyright The Guardian Online
NGX reverses rally as market capitalisation depreciates by N81 billion