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Renewed profit-taking drags capitalisation by N54bn

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…As GTBank plans to list holdCo on exchange 
Renewed profit-taking in the shares of many blue-chip stocks, especially Fidson and Lasaco Assurance, dampened activities on the Nigerian Exchange Limited (NGX) causing a downturn in market capitalisation by N54 billion.

Yesterday, the All-Share Index (ASI) dropped by 103.61 absolute points, representing a decline of 0.27 per cent to close at 38,545.30 points.

Also, market capitalisation shed N54 billion to close at N20.089 trillion.

The loss was driven by price depreciation in large and medium capitalised stocks amongst which are; Fidson Healthcare, Lasaco Assurance, Oando, Ecobank Transnational Incorporated (ETI) and Dangote Sugar Refinery.

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Speaking on market performance, analysts at United Capital Plc said, “We expect the bullish sentiments from the prior week to be sustained into the new week even as a single stock (Airtel Africa) masked positive sentiments from last week.
“Technically, the ASI has further room to trod higher before another profit taking-triggered retracement.”

Vetiva Dealings and Brokerage firm said: “With market breadth returning to negative territory and activity levels moderating, we foresee a reversal in tomorrow’s session, with sell-offs likely to outweigh buy-side activity.”

On the price movement chart, 18 shares appreciated in price while 17 constituted the losers’ chart.  Meyer Plc emerged the day’s highest price gainer with 8.77 per cent to close at 62 kobo.

Champion Breweries followed with a gain 6.06 per cent to close at N2.10 kobo. Julius Berger Nigeria went up by 4.71 per cent to close at N20.00 kobo.

Regency Alliance Insurance rose by four per cent to close at 52 kobo. Ikeja Hotel gained 3.19 per cent to close at 97 kobo.

Meanwhile, the shares of Guaranty Trust Bank (GTB) Holding Company (holdCo) would be listed on the NGX, following the  suspension of trading on shares on the exchange.

The trading in the shares of the bank Plc has been put on hold by the NGX ahead of the listing of the holding company.

This was contained in a statement signed and released by Godstime Iwenekhai, head of NGX listings regulation department at the weekend.

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Iwenekhai explained that the development is to prepare for the eventual delisting of the bank from the daily official list of the NGX and listing of the holding company, Guaranty Trust Holding Company Plc on NGX.

The statement read: “Trading License Holders and the investing public are hereby notified that trading in the shares of Guaranty Trust Bank Plc (the Bank) was suspended today, Friday, 18 June 2021.

“The suspension is necessary to prevent trading in the shares of the Bank in preparation for the eventual delisting of Guaranty Trust Bank Plc from the Daily Official List of the Nigerian Exchange Limited (NGX) and listing of the Holding Company, Guaranty Trust Holding Company Plc on NGX.”

Recall that the GTB announced that it had obtained the approval-in-principle of the Central Bank of Nigeria (CBN) to commence the formal process of reorganising the bank to a financial holding company.

The financial institution noted that the restructuring process would be implemented by an arrangement between the bank and its shareholders in line with the Companies and Allied Matters Act (CAC).

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