Capitalisation plunges by N371b as stock market reverses gains

The Nigerian Stock Exchange (NSE) has reversed previous gains to close on a bearish note yesterday as most blue-chip stocks depreciated, causing market capitaliisation to plunge by N371 billion.

At the close of transactions yesterday, the All-Share Index (ASI) fell by 709.72 points or 1.8 per cent to 38,686.85 points.

Accordingly, investors lost N371 billion in value as market capitalisation declined to N20.241 trillion.

The downturn was impacted by losses recorded in medium and large capitalised stocks, including Lafarge Africa, United Bank for Africa, Greif Nigeria, Northern Nigeria Flour Mills (NNFM) and Zenith Bank.

Analysts at Afrinvest Limited said: “We expect continued sell pressures in the next trading session given that investor sentiment remains weak.”

Market sentiment, as measured by market breadth, was negative, as 21 stocks lost, relative to 15 gainers. Champion Breweries recorded the highest price gain of 9.78 per cent to close at N2.02 kobo.

Neimeth International Pharmaceuticals followed with a gain 9.71 per cent to close at N1.92 kobo while Mutual Benefits Assurance gained 8.11 per cent to close at 40 kobo.

Dangote Sugar Refinery went up by 7.99 per cent to close at N18.25, while Associated Bus Company appreciated by 7.14 per cent to close at 30 kobo.

On the other hand, UBA led the losers’ chart by 10 per cent to close at N7.20 kobo.

Caverton Offshore Support Group followed with a decline of 9.55 per cent to close at N1.8 while NNFM 9.52 per cent to close at N5.70 kobo.

Greif Nigeria lost 9.46 per cent to close at N6.7 while AXA Mansard Insurance shed 9.09 per cent to close at 90 kobo.

However, the total volume traded advanced by 64.8 per cent to 545.915 million shares worth N9.587 billion and traded in 5,307 deals.

Transactions in the shares of United Bank for Africa topped the activity chart with 123.272 million shares valued at N887.626 million.

Notore Chemical Industries followed with 74.074 million shares worth N3.674 billion, while Mutual Benefits Assurance traded 58.036 million shares valued at N23.185 million.

FBN Holdings traded 48.939 million shares valued at N352.081 million while Access Bank transacted 42.744 million shares worth N324.215 million.