The Nigerian Exchange Limited (NGX) reversed gains to close on a downward note yesterday as the overall capitalisation declined by N1.334 trillion following sell off in in Dangote Cement Plc and 38 stocks.
The all-share index declined by 2,109 points, representing a loss of 1.46 per cent, to close at 142,613.47 points. Similarly, the overall market capitalisation value lost N1.334 trillion to close at N90.227 trillion.
The market negative performance was driven by price depreciation in large and medium capitalised stocks which are; Dangote Cement, CAP, Zenith Bank, Nigerian Exchange Group and NASCON Allied Industries.
On market outlook, Afrinvest Limited said: “We expect the bearish performance to persist due to profit taking activities.”Analysts at Vetiva Dealings and Brokerage said: “We expect risk-off sentiment to persist, with profit-taking in large caps likely spilling into the mid- and small-cap space. That said, such pullbacks should create attractive entry points for investors to re-engage fundamentally strong names at discounted levels.”
Investor sentiment, as measured by market breadth, closed negative as 26 stocks advanced, while 39 declined. Nigerian Enamelware recorded the highest price gain of 9.95 per cent to close at N35.90 kobo.
DAAR Communication followed with a gain of 9.82 per cent to close at N1.23 kobo. Deap Capital Management and Trust up by 9.6 per cent to close at N1.94 kobo.
Academy Press appreciated by 8.43 per cent to close at N9, while International Breweries rose by 6.95 per cent to close at N13.85 kobo. On the other hand, Royal Exchange led the losers’ chart by 10 per cent to close at N2.52 kobo. Dangote Cement followed with a decline of 9.88 per cent to close at N520 while R.T. Briscoe lost 9.87 per cent to close at N3.56 kobo.
Jaiz Bank declined by 9.81 per cent to close at N4.32, while Wapic Insurance and Lasaco Assurance shed 9.77 per cent each to close at N3.60 kobo.
Also, the total volume traded fell by 10.4 per cent to 1.027 billion units, valued at N17.664 billion, and exchanged in 34,352 deals.
Transactions in the shares of Universal Insurance topped the activity chart with 130.222 million shares valued at N173.672 million. AIICO Insurance followed with 100.112 million shares worth N437.561 million, while Mutual Benefits Insurance traded 68.521 million shares valued at N310.653 million.
Prestige Assurance traded 66.867 million shares valued at N135.371 million, while Regency Alliance Insurance transacted 46.141 million shares worth N69.258 million.
