NGX index dips by 0.5% as Airtel, 21 others record losses

For the third consecutive session, negative sentiments persisted in the equities sector of the Nigerian Exchange Limited (NGX), following the selloff in Airtel Africa and 21 stocks, causing the All-Share Index (ASI) to dip further by 0.5 per cent.

At the close of transactions yesterday, the ASI lost 303.7 points, representing a decline of 0.47 per cent to close at 64,625.28 points. Also, market capitalisation declined by N13 billion to close at N 35.37 trillion.

The downturn was driven by price depreciation in large and medium capitalised stocks amongst which are Airtel Africa, NEM Insurance, Fidelity Bank, Guaranty Trust Holding Company (GTCO) and Transcorp Hotel.

As measured by market breadth, market sentiment was negative, as 17 stocks gained relative to 22 losers. Eterna emerged as the highest price gainer of 10 per cent to close at N17.60 kobo. Computer Warehouse Group (CWG) followed with a gain of 8.61 per cent to close at N3.28, while FTN Cocoa processors rose by 6.97 per cent to close at N2.15 kobo.

Livestock Feeds increased by 5.56 per cent to close at N1.90, while Vitafoam Nigeria added 4.78 percent to close at N21.90 kobo. Universal insurance added 4.55 percent to close at 23 kobo. Buafoods rose by 4.37 percent to close at N139.85 kobo. UACN appreciated by 3.88 percent to close at N10.70 kobo.

Fidson garnered 3.38 percent to close at N14.99 kobo. Dangote Sugar Refinery increased by 3.03 percent to close at N34. Custodian &Allied insurance improved by 1.31 percent to close at N7.75 kobo. Betaglass also appreciated by 1.3 percent to close at N39.

On the other side, NEM Insurance led the losers’ chart with 10 percent to close at N5.4. SUNU Assurance followed with a decline of 8.51 percent to close at 86 kobo, while Guinea Assurance shed 7.89 percent to close at 35 kobo.

Cornerstone Insurance depreciated by 7.09 percent to close at N1.31 kobo while Omatek Ventures was down by 5.88 percent to close at 32 kobo.

UPDC dropped 5.36 percent to close at N1.06 kobo while Airtel Africa shed 5.30 percent to close at N1,250. Multiverse depreciated by 4.76 percent to close at N3. Neimeth declined by 4.43 percent to close at N1.51 kobo.
Fidelity Bank fell by 3.95 percent to close at N7.30 kobo. Veritas Kapital shed 3.70 kobo to close at 26 kobo. Unity Bank also declined by 2.90 percent to close at N1.34 kobo.

Analysts at Vetiva Dealings and Brokerage said: “While we might see recovery in some of the week’s decliners, we still expect bearish sentiment in the market.”

The total volume traded rose slightly by 4.01 per cent to 291.714 million units, valued at N7.432 billion, and exchanged in 6,213 deals. Transactions in the shares of GTCO led the activity with 41.747 million shares worth N1.553 billion.

Universal Insurance followed with an account of 22.841 million shares valued at N5.169 million, while United Bank for Africa (UBA) traded 22.553 million shares valued at N315.379 million.

Sterling Financial Holdings Company traded 21.643 million shares worth N76.981 million, while Transnational Corporation traded 15.703 million shares worth N62.653 million.