Equities dip further by N14 billion ahead of Easter break

Ahead of the Easter celebration, profit-taking by investors on the Nigerian Exchange Limited (NGX) dragged market capitalisation further by N14 billion, as virtually all the blue-chip companies depreciated yesterday. The all-share index (ASI) fell by 24.84 points, representing a decline of 0.05 per cent, to close at 52,994.13 points.

Accordingly, investors lost N14 billion in value as market capitalisation declined to N28.869 trillion. The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are Dangote Sugar Refinery, Eterna, Guaranty Trust Holding Company (GTCO), Lafarge Africa and University Press.

Analysts at United Capital Plc said; “We retain a positive outlook for the equities market in Q2, 2023. On one end, our prognosis is hinged on our expectation for a depressed yield environment in the fixed-income market, buoyed by the excess maturities (N2 trillion) expected in Q2-2022.

“On the other end, we expect investors’ risk-on sentiment to be bolstered by strong corporate performance, impressive dividend yield (particularly as the dividend payment season is already underway), and improving economic growth prospects. For equity-vested fund managers, we recommend cherry-picking equities with solid fundamentals and dividend yield.”

Vetiva Dealings and Brokerage said: “It was another bearish week, amid red closes all through the week. We expect mixed trading sessions next week as well.”

The market breadth was negative as 18 stocks depreciated, while nine others constituted the gainers’ chart. AIICO Insurance recorded the highest price gain of 5.26 per cent to close at 60 kobo. Academy Press followed with a gain of 4.65 per cent to close at N1.35 kobo. Chams was up by 4.35 per cent to close at 24 kobo.

United Bank for Africa (UBA) rose by 2.4 per cent to close at N8.55 kobo, while Champion Breweries gained two per cent to close at N5.10 kobo. United Capital increased by 1.3 per cent to close at N11.70 kobo. FBN Holdings garnered 91 per cent to close at N11.10 kobo. Oando appreciated by 71 per cent to close at N5.65 kobo. Nigerian Aviation Handling Company also gained 51 per cent to close at N9.80 kobo.

On the other hand, University Press led the losers’ chart by 10 per cent to close at N1.80 kobo. Wapic Insurance followed with a decline of 6.98 per cent to close at 40 kobo, while Eterna declined by 5.98 per cent to close at N5.50 kobo.

FTN Cocoa Processors declined 3.57 per cent to close at 27 kobo, while Regency Alliance Insurance shed 3.33 per cent to close at 29 kobo. Cutix lost 3.04 per cent to close at N2.23 kobo. Royal Exchange depreciated by 2.94 per cent to close at 66 kobo. Dangote Sugar Refinery also declined by 2.86 per cent to close at N17.

However, the total volume traded increased by 35.28 per cent to 266.953 million units, valued at N1.929 billion, and exchanged in 3,651 deals. Transactions in the shares of Transnational Corporation (Transcorp) topped the activity chart with 147.152 million shares valued at N205.686 million.

Zenith Bank followed with 19.107 million shares worth N487.11 million, while United Bank for Africa (UBA) traded 18.019 million shares valued at N152.385 million.

Access Holdings traded 12.117 million shares valued at N108.866 million, while AXA Mansard Insurance transacted 7.354 million shares worth N16.265 million.