Selloff persists as market capitalisation depreciates further by N91b

Following persistent sell pressure in some high-value stocks, the domestic equities market closed negative at the end of yesterday’s transactions, causing the market capitalisation to depreciate further by N91 billion.

Yesterday, the All Share Index (ASI) shed 174.36 absolute points, representing a loss of 0.50 per cent to close at 34,643.65 points. Accordingly, investors lost N91 billion in value as market capitalisation dropped to N18.102 trillion.

The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are; Presco, Stanbic IBTC Holdings, Guaranty Trust Bank, Dangote Sugar Refinery, and Zenith Bank.
Analysts at Afrinvest Limited expected the market to close negative this week on sustained profit-taking.

Also, sentiment, as measured by the market breadth, was negative as 28 stocks lost, relative to 19 gainers. BOC Gases Nigeria recorded the highest price gain of 9.90 per cent to close at N6.77 per share.

Eterna followed with a gain of 9.89 per cent to close at N4.78, while Red Star Express rose by 9.79 per cent to close at N3.59, per share. May and Baker Nigeria rose 9.75 per cent to close at N3.49, and Cornerstone Insurance appreciated by 9.43 per cent to close at 58 kobo, per share.

On the other hand, Presco led the losers’ chart by 9.97 per cent, to close at N71.80, per share. FCMB Group followed with a decline of 9.85 per cent, to close at N3.02, while Linkage Assurance shed 9.09 per cent to close at 50 kobo, per share.

Fidelity Bank shed 7.02 per cent to close at N2.65, while Wapic Insurance lost 6.67 per cent to close at 42 kobo, per share.

However, the total volume traded declined by 44.80 per cent to 364.920 million shares worth N3.502 billion, traded in 6,340 deals.

Transactions in the shares of Transnational Corporation of Nigeria (Transcorp) topped the activity chart with 50.735 million shares valued at N53.920 million.

FBN Holdings (FBNH) followed with 38.552 million shares worth N292.39 million, while Access Bank traded 25.895 million shares valued at N227.162 million.

United Bank for Africa (UBA) traded 24.781 million shares at N214.22 million, and Fidelity Bank transacted 24.359 million shares worth N67.037 million.