Price depreciation drag NSE’s indices by N89 billion

At the end of yesterday’s transactions on the equity sector of the Nigerian Stock Exchange (NSE), price depreciation on the shares of 21 companies, especially Meyer Plc and UAC Property pulled market capitalisation by N89 billion.

Indeed, the All -Share Index (ASI) shed 244.12 absolute points, representing a dip of 0.76 per cent, to close at 31,864.80 points. Similarly, the market capitalisation shed N89 billion to close at N11.633 trillion.

The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are; International Breweries, Guaranty Trust Bank, Mobil Nigeria, Zenith Bank and UAC Nigeria.

Analysts at Cordros Capital said: “our outlook for equities in the short to medium term remains conservative, amidst brewing political concerns, and the absence of a one-off positive trigger. However, stable macro-economic fundamentals remain supportive of recovery in the long term.”

Market breadth closed negative with 10 gainers against 21 losers. Jaiz Bank recorded the highest price gain of 7.50 per cent, to close at 43 kobo, per share. Japaul Oil & Maritime Services followed with a gain of five per cent, to close at 21 kobo, while Union Bank of Nigeria (UBN) rose by 4.12 per cent to close at N5.05, per share, respectively.

Wema Bank appreciated by 3.77 per cent to close at 55 kobo, while Law Union and Rock Insurance went up by 3.64 per cent to close at 57 kobo, per share.

On the other hand, Meyer and UAC Property Development Company led the losers’ chart by 10 per cent, each to close at 54 kobo and N1.44, while International Breweries followed with a decline 9.99 per cent to close at N30.20, per share.

Cand I Leasing declined by 9.92 per cent to close at N2.27, while Cutix down by 9.29 per cent to close at N1.66, per share.

Investors traded a total share volume of 349.25 million valued at N2.45 billion in 2,595 deals.

Diamond Bank traded with 208.68 million shares valued at N185.36 million. FCMB Groups followed with 34.68 million shares worth N53.83 million, while Stanbic IBTC Holdings traded 15.1 million shares valued at N724.72 million.

United Bank for African (UBA) traded 13.62 million shares valued at N107.31 million, while Guaranty Trust Bank transacted 11.93 million shares worth N423.54 million.