Stock market reverses gains, capitalisation dips by N152 billion

Following sell-offs on Northern Nigeria Flour Mills (NNFM) and 50 others, the Nigerian stock market reversed gains to post its first loss in the year yesterday, as the overall capitalisation depreciated by N152 billion.

At the close of transactions yesterday, the all-share index (ASI) dipped by 249.42 points, representing a loss of 0.24 per cent to close at 103,398.82 points.

Also, market capitalisation depreciated by N152 billion to close at N63.051 trillion. The negative performance was impacted by losses recorded in medium and large capitalised stocks, amongst which are; Northern Nigeria Flour Mills (NNFM), Vitafoam Nigeria, Africa Prudential, Zenith Bank and SUNU Assurance.

On what will shape the market in the next trading session, analysts at Vetiva Dealings and Brokerage said: “The ASI is off to a slower start this January, diverging from the 6.5 per cent gain recorded in the first week of 2024. Investor sentiment appears cautious, likely influenced by higher fixed-income yields. We anticipate selective buying to guide tomorrow’s market action.”

Investor sentiment, as measured by market breadth closed negative as 19 stocks advanced, while 51 declined. Abbey Mortgage Bank and PZ Cussons Nigeria recorded the highest price gain of 10 per cent each to close at N3.63 kobo and N27.50 kobo respectively, while Learn Africa followed with a gain of 9.90 per cent to close at N5.44 kobo.

NCR Nigeria up by 9.77 per cent to close at N7.30 kobo, while Nigerian Exchange Group appreciated by 9.72 per cent to close at N29.90 kobo. On the other hand, FTN Cocoa Processors, RT Briscoe Nigeria and Veritas Kapital Assurance led the losers’ chart by 10 per cent each to close at N1.80 kobo, N2.70 kobo and N1.53 kobo respectively.

SUNU Assurance and Cornerstone Insurance followed with a decline of 9.98 per cent each to close at N10.01 kobo and N4.15 kobo respectively, while Honeywell Flour Mills shed 9.92 per cent to close at N7.54 kobo.

The total volume traded increased by 30.0 per cent to 1.112 billion units, valued at N14.638 billion, and exchanged in 16,617 deals. Transactions in the shares of FBNH Holdings (FBNH) topped the activity chart with 161.46 million shares valued at N4.715 billion. AIICO Insurance followed with 120.703 million shares worth N225.444 million, while Tantalizers traded 104.762 million shares valued at N267.395 million.

Universal Insurance traded 93.811 million shares valued at N78.058 million, while Regency Alliance Insurance sold 47.325 million shares worth N44.546 million.