Sell-off in 23 stocks drags capitalisation by N75 billion
Transactions on the Nigerian Exchange Limited (NGX) reopened on a downturn, yesterday, occasioned by sell-off in 23 stocks, as market capitalisation depreciated by N75 billion.
Specifically, at the close of transactions the All-Share Index (ASI) declined by 139.02 per cent, representing a decrease of 0.30 per cent, to close at 47,063.28 points. Similarly, the overall market capitalisation value lost N75 billion to close at N25.361 trillion.
The market negative performance was driven by price depreciation in large and medium capitalised stocks, which are: Airtel Africa, Nigerian Exchange Group (NGXGroup), BUA Foods, Custodian Investment and Lafarge Africa.
Analysts at United Capital Plc said investors would continue to book profits on positions that have appreciated significantly in the past weeks.
“From the large cap stocks, we expect the profit taking to extend to their mid-cap and small-cap out-performers. That said, with the big banks likely to release their full year 2021 numbers within the next two weeks, we expect investors to begin to take positions in names expected to deliver outperforming numbers while declaring strong dividend payments,” they told The Guardian.
Vetiva Dealing and Brokerage said: “Positive activity in names like GUINNESS continue to lift the consumer goods sector, as increased buy interest amid strong valuations push the price higher. We are likely to see another bearish close due to profit taking activities, while market trades mixed.”
Meanwhile, market breadth closed at par, as 23 stocks both advanced and declined.
On the price movement chart, Japaul Gold and Ventures led the losers’ chart by 7.69 per cent to close at 36 kobo. Courteville Business Solutions followed with a decline of 7.27 per cent to close at 51 kobo while Custodian Investment lost 5.70 per cent to close at N7.45 kobo. NGX Group declined by 5.66 per cent to close at N25.00 kobo.
NPF Microfinance Bank shed 5.45 per cent to close at N2.08 kobo. Neimeth Pharmaceuticals dropped 5.24 per cent to close at N1.81 kobo. Multiverse depreciated by 4.76 per cent to close at 20 kobo. Veritas Kapital shed 4.55 per cent to close at 21 kobo.
UPDC declined 4.50 per cent to close at N1.06 kobo. Honeywell flourmills lost 4.29 per cent to close at N3.35 kobo. Mansard also shed 4.00 per cent to close at N2.40 kobo.
On the other hand, Guinness Nigeria, Learn Africa and NCR Nigeria recorded the highest price gain of 10 per cent each to close at N66.55, N1.65 and N3.63 kobo.
University Press followed with a gain of 9.81 per cent to close at N2.91 kobo.
Academy Press appreciated by 9.56 per cent to close at N1.49 kobo.
Pharma-Deko rose by 9.09 per cent to close at N1.80 kobo while NEM Insurance gained 8.13 per cent to close at N3.59 kobo. RT Briscoe garnered 7.69 per cent to close at 42 kobo. Champion Breweries gained 7.58 per cent to close at N2.27 kobo. Ikeja Hotel added 7.04 per cent to close at N1.52 kobo.
The total volume traded increased by 8.51 per cent to 338.025 million units, valued at N5.675 billion, and exchanged in 5,619 deals. Transactions in the shares of Fidelity Bank topped the activity chart with 35.821 million shares valued at N104.933 million.
Access Bank followed with 33.854 million shares worth N353.717 million, while Transnational Corporation of Nigeria (Transcorp) traded 32.877 million shares valued at N38.505 million.
Sterling Bank traded 24.507 million shares valued at N41.909 million, while Guaranty Trust Bank Holding Company (GTCO) transacted 23.180 million shares worth N613.440 million.
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