Investors lose N656 billion over covid-19, oil fears

At the end of yesterday’s transactions, investors’ losses at the Nigerian Capital market rose to N656 billion. This is even as the market continues to plunge on COVID-19 and dwindling oil price fears.

Specifically, the All-Share Index (ASI) decreased by 1,258.88 absolute points, the largest single-day decline since falling 8.4 per cent on March 19, 2010. This represents a dip of 4.91 per cent to close at 24,388.66 points. Similarly, the overall market capitalisation size shed N656 billion, to close at N12.710 trillion.

The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are; MTN Nigeria, Nigerian Breweries, Stanbic IBTC Holdings, Chemical and Allied Products (CAP) Plc and Guaranty Trust Bank.

Analysts at Afrinvest Limited said: “As oil prices struggle to trend upwards amid no respite for the COVID-19 outbreak, we expect sentiment to remain bearish in the next trading session.”

Market breadth closed negative, with three gainers against 33 losers. Neimeth International Pharmaceuticals recorded the highest price gain of 10 per cent, to close at 44 kobo, per share. Honeywell Flour Mill followed with a gain 3.45 per cent to close at 90 kobo, while NEM Insurance rose by 1.16 per cent to close N1.75, per share.

On the other hand, Dangote Sugar Refinery, Fidelity Bank, NASCON Allied Industries, Stanbic IBTC Holdings and MTN Nigeria led the losers’ chart by 10 per cent each, to close at N9.90, N1.62, N11.70, N28.35 and N103.50, per share, respectively.

Union Bank of Nigeria (UBN), Nigerian Breweries, Guaranty Trust Bank, International Breweries and CAP followed with a decline of 9.93 per cent each, to close at N6.35, N33.10, N19.95, N6.35 and N19.95, per share, respectively.

Lafarge Africa went down by 9.89 to close at N12.30, while Oando shed 9.88 per cent to close at N2.19, per share.

However, the total volume of trades increased by 220.3 per cent to 594.55 million units, valued at N4.21 billion and exchanged in 4,010 deals. Transactions in the shares of United Bank for Africa (UBA) topped the activity chart with 166.42 million shares valued at N942.73 million.

FBN Holdings followed with 163.96 million shares worth N724.83 million, while Guaranty Trust Bank traded 54.52 million shares valued at N1.09 billion.

Fidelity Bank traded 31.93 million shares valued at N51.73 million, while Zenith Bank transacted 30.09 million shares worth N392.62 million.