NGX extends losses as capitalisation plunges further by N1 billion
The Nigerian Exchange Limited (NGX) extended negative sentiments to two consecutive trading sessions yesterday, as more blue-chip stocks depreciated in price, resulting to a further slide in the capitalisation declined further by N1billion.
At the close of trading yesterday, the All-Share Index (ASI) deprecited by 0.6 points, to close at 37,857.24 points.
Similarly, the overall market capitalisation declined by N1 billion to close at N19.724 trillion.
The downturn was driven by price depreciation in large and medium capitalised stocks amongst which are; Custodian Investment, FBN Holdings (FBNH), PZ Cussons Nigeria, Zenith Bank and Guaranty Trust Bank Holding Company (GTCO).
Analysts at Afrinvest Limited said: “In the next trading session, we expect the domestic bourse to extend bearish performance due to selling pressure in the market.”
NCR Nigeria recorded the highest price gain of 9.64 per cent to close at N2.73 kobo while Wema Bank followed with a gain 9.46 per cent to close at 81 kobo, while FTN Cocoa Processors went up by 8.33 per cent to close at 39 kobo.
On the other hand, Ikeja Hotel led the losers’ chart with 9.09 per cent to close at N1.40 kobo. Custodian Investment followed with a decline of 6.15 per cent to close at N6.10,kobo.
Meanwhile Guaranty Trust Holding Company Plc (GTCO Plc) commemorated the listing of its shares on NGX with a Closing Gong Ceremony yesterday, following its transition into a Holding company (holdco) structure from commercial banking model.
With the development, GT Bank Plc will now be referred to as Guaranty Trust Holding Company (GTCO) Plc to the investing community, while the bank would adopt a one-for-one share exchange ratio that will not reduce or impact its shareholding structure of the bank.
According to GTCO, the transition would help grow its earnings in a sustainable manner and achieve its long-term goal of becoming one of the top five financial institutions in Africa.
Speaking at the closing gong ceremony to commemorate the listing of GTCO Plc on the NGX in Lagos, the Group Chief Executive Officer, GTCO Plc, Segun Agbaje, noted that the company was not oblivious of the current changes in the financial space, noting that the transition and listing of the bank was done to enhance growth of its share, add value to the bank as well as achieve its long term goal of becoming one of the top five financial institutions in Africa.
Agbaje said the experience of trading on the NGX has been memorable, stating that GTCO is excited with the opportunities that have opened up for the bank with the current restructuring, especially with the diversification of its income base, which has been its major priority.
“On behalf of the board and management of GTBank and the newly formed GTCO, I must thank NGX for its unwavering support in listing GTCO on the exchange. At GTCO, we are very excited about the opportunities that have opened up to us with this restructuring, particularly because diversifying our income base has always been a major priority.
“As we venture into this new phase, we look forward to leveraging technology and introducing new business lines – including payments, asset management and more – that go beyond the needs of institutional or wholesale clients to improve retail clients’ access to the financial markets.”
The Chief Executive Officer, NGX, Temi Popoola commended the board and management of GTCO Plc for its successful restructuring, adding that the NGX will continue to partner GTCO and other listed companies and issuers even as it continues to build a platform that allows listed companies, investors and other stakeholders to maximise value in the market.
“We are excited to welcome GTCO Plc and to congratulate the Board and Management on a successful restructuring. Given the recent completion of demutualisation of the exchange and the emergence of our new structure, we see many similarities between our organisations, particularly our outlook on the use of technology to advance business operations; the burgeoning opportunities in the retail market; and the importance of good governance in the corporate space.
“Today, we reiterate our commitment to being a trusted partner to GTCO and other listed companies and issuers as we continue to build a platform that allows our listed companies, investors and other stakeholders to maximise value in our market,” he said.
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