NGX reverses gains as Airtel Africa, 15 stocks drag indices by N134b
The Nigerian Exchange Limited (NGX) yesterday closed on a bearish note as the capitalisation dipped by N134 billion, following losses in Airtel Africa Plc and 15 stocks.
In summary, the All-Share Index (ASI) declined by 246.48 absolute points, representing a drop of 0.48 per cent, to close at 51,446.60 points.
Similarly, the overall market capitalisation value shed N134 billion to close at N28.022 trillion.
The market loss was driven by price depreciation in large and medium capitalised stocks amongst which are; Airtel Africa, Nigerian Exchange Group (NGXGroup), Champion Breweries, NEM Insurance and UAC of Nigeria (UACN).
Analysts said the bears resumed activities on stocks yesterday, as investors booked profits from the extended rally.
United Capital Plc, said: “The Central Bank of Nigeria’s recent CRR debits in the money market will likely discourage investors from sustaining investment in equities in the short-term as they hope for improvement in money market yields.
“However, we see any downturn as a short-term buying opportunity as we expect investors’ risk-on sentiments will linger through Q1, 2023, favouring the equities market, as the prevailing downward pressure interest rates will persist through the quarter.”
Vetiva Dealings and Brokerage said: “Trades in large cap stocks dictated market direction once again and despite a relatively positive market breadth, the session closed in the red. Barring any major decline in the heavy weights tomorrow, we expect to see slight recovery in the market.”
As measured by market breadth, market sentiment was positive, as 18 stocks gained relative to 16 losers. Thomas Wyatt Nigeria recorded the highest price gain of 9.43 per cent to close at N1.16 kobo. Mutual Benefits Assurance followed with a gain 7.14 per cent to close at 30 kobo, while Academy Press went up by 5.65 per cent to close at N1.31 kobo.
Lasaco Assurance rose by 4.44 per cent to close at 94 kobo, while Chams gained 4.35 per cent to close at 24 kobo, per share.
On the other hand, NEM Insurance led the losers’ chart by 10 per cent to close at N4.05 kobo. Chellarams Plc followed with a decline of 9.90 per cent to close at N1.82 kobo, while Champion Breweries lost 9.58 per cent to close at N4.34 kobo.
Cornerstone Insurance lost 6.67 per cent to close at 56 kobo, while Honeywell Flour Mills shed 4.96 per cent to close at N2.30.
The total volume traded increased by 50.7 per cent to 345.491 million units, valued at N8.291 billion, and exchanged in 4,184 deals. Transactions in the shares of FBN Holdings (FBNH) topped the activity chart with 151.388 million shares valued at N1.697 billion. BUA Cement followed with 30.459 million shares worth N2.920 billion, while Zenith Bank traded 25.459 million shares valued at N619.714 million.
Fidelity Bank traded 18.555 million shares valued at N87.555 million, while Transnational Corporation of Nigeria (Transcorp) transacted 13.009 million shares worth N15.453 million.