Massive sell-off hits stock market, indices plunge further by N141b

The market capitalisation of the Nigerian Stock Exchange (NSE) plunged significantly at the end of yesterday’s transactions, following massive sell-off in the shares of most highly capitalised firms, especially Mobil Nigeria and Stanbic IBTC Holdings, causing investors’ wealth to dip further by N141 billion.

At the close of transactions, performance across sectors was bearish, as market breadth remained negative with 11 gainers against 30 losers.

Specifically, the All-share index (ASI) shed 363.37 absolute points, representing a dip of 1.26 per cent to close at 28,484.44 points.

Also, market capitalisation shed N141 billion, representing a dip of 1.30 per cent to close at N10.701 trillion, as the entire share capital 634 million shares of  Newrest ASL was delisted from the daily official list of the exchange, yesterday, May 13, 2019.

The performance was influenced by price depreciation in medium and large capitalised stocks, among which are, Mobil Nigeria, Stanbic IBTC Holdings, Guinness Nigeria, Guaranty Trust Bank and PZ Cussons Nigeria.

Analysts at APT Securities and Funds Limited said: “Equities continue in negative band as bearish trend continues and the ASI now down to 28,000 thresholds.  All sector indices closed in red led by the financial services sector on massive sell-offs.  We expect further moderation of the ASI to be diluted by value investors’ position for long term.”

Neimeth International Pharmaceuticals and Okomu Oil recorded the highest price gain of 10 per cent, each to close at 55 kobo and N77, respectively, while AG Leventis & Company followed with a gain of 8.33 per cent to close at 26 kobo, per share.

Africa Prudential appreciated by 7.91 per cent to close at N3.82, while Japaul Oil & Maritime Services went up by 7.69 per cent to close at 28 kobo, per share.

On the other hand, Chams and NEM Insurance led the losers’ chart by 10 per cent, each to close at 36 kobo and N2.25, respectively, while United Capital followed with a decline 9.38 per cent to close at N2.32, per share.

Goldlink Insurance  declined by 8.70 per cent to close at 21 kobo, while Jaiz Bank down by eight per cent, to close at 46 kobo, per share.

Total volume traded went up by 8.73 per cent to 214.68 billion units, valued at N2.78 billion, and exchanged in 3,856 deals.

UAC of Nigeria (UACN) traded with 41.29 million shares valued at N289.05 million.  Guaranty Trust Bank followed with 37.98 million shares worth N1.18 billion, while United Bank for Africa (UBA) traded 15.96 million shares valued at N96.83 million.

Sterling Bank traded 13.03 million shares valued at N34.5 million, while Transnational Corporation of Nigeria (Transcorp) transacted 12.25 million shares worth N14.19 million.