The Nigerian Exchange Limited (NGX) had a fall in trading yesterday due to selling pressure in 17 stocks, including BUA Cement, which resulted in an N130 billion decline in market capitalization.
In fact, yesterday’s closing value of 70,612.81 points on the All-Share Index (ASI) represented a decrease of 0.33 percent or 236.57 points. To finish at N38.795 trillion, the market capitalization also decreased by N130 billion.
The decline in the value of major and medium-sized stocks, such as BUA Cement, Japaul Gold & Ventures, Nigerian Exchange Group, NEM Insurance, and Chams Holding Company, was the primary cause of the slump.
United Capital Plc analysts stated: “We anticipate mixed feelings to prevail, with more favorable sentiments from investors, especially towards listed corporates with good fundamentals and exceptional financial performance over the first nine months of 2023.
It is also anticipated that there may be periods of profit-booking as some investors try to crystallize their gains. A persistent increase in bank-offered fixed-term deposit (FTD) rates would be detrimental to the equity market since it would inevitably cause some interest to shift toward money market products.
Market breadth, on the other hand, closed higher as 26 companies rose compared to 18 decliners. The two companies with the biggest price increases, Aluminum Extrusion Industries, and R. T. Briscoe Nigeria, closed at N7.15 kobo and 66 kobo, respectively, after rising by 10% apiece.
MeCure Industries closed at N4.31 kobo after gaining 9.95 percent. DEAP Capital Management & Trust had a gain of 9.68 percent to close at 34 kobo, while McNichols saw an increase of 9.84 percent to conclude at 67 kobo.
Conversely, Japaul Gold & Ventures, with a 9.09 percent closing price of N1.80 kobo, led the other companies on the losers’ chart.
Veritas Kapital Assurance fell by 7.41 percent to settle at 25 kobo, while BUA Cement trailed with a 7.76 percent fall to close at N98.70.
Closing at 25 kobo, Universal Insurance lost 7.41 percent, and Chams Holding Company dropped 3.85 percent of its value to close at N2.
With 474.39 million units sold in 7,630 trades for a total value of N7.75 billion, the overall volume traded fell by 14.8%. The activity was dominated by transactions involving Fidelity Bank shares, with 94.048 million shares valued at N858.547 million.
United Bank for Africa (UBA) traded 54.924 million shares worth N1.141 billion, while Japaul Gold & Ventures came in second with an account of 465.978 million shares valued at N120.977 million.
While Jaiz Bank traded 21.710 million shares worth N34.941 million, Transnational Corporation traded 25.981 million shares worth N161.122 million.
