Yesterday, the market capitalization of the Nigerian Exchange Limited (NGX) was reduced by N662 billion due to significant losses incurred by numerous blue-chip firms, especially Airtel Africa and Seplat.
The market value of listed securities specifically fell by 2.08 percent to N29.281 trillion from N29.903 trillion reported on Friday. The All Share Index also experienced a loss of 1141.76 basis points, falling from 54892.53 points traded the day before to 53750.77 points today.
Losses in medium- and large-capitalized stocks, including Airtel Africa, Seplat Energy, MTN Nigeria Communications (MTNN), Nigerian Breweries, and Lafarge Africa, had an impact on the downturn.
United Capital Plc analysts stated, “We expect risk-on sentiments to be sustained in the equities markets even as the depressed interest rate environment will continue to favour the local bourse in line with our expectations for Q1, 2023.”
“Taking positions in stocks with solid valuations and dividend yields ahead of the dividend-paying season remains the choice strategy. However, we see room for extended profit-taking activities.”
Vetiva Dealing and Brokerage stated that: “Sell pressure continues to drive the market south as sellers outweigh buyers. We anticipate a mixed trading session tomorrow amid mild recoveries.”
As a result of 21 stocks falling relative to 5 rising, the market breadth was negative.
NCR Nigeria, which closed at N2.12 per share, took the top spot on the losers’ chart by 9.79%. After that, Unity Bank dropped 9.43% to finish at 48 kobo.
Prestige Assurance lost 8.89% of its value, closing at 41 kobo per share.
Multiverse Mining and Exploration and Airtel Africa both had share price declines of 8.31 percent to close at N2.98 and N1,420.00, respectively, while SUNU Assurance fell by 8.33 percent to conclude at 44 kobo. Seplat fell by 4.17 percent to close at N1,150.00.
FTN Cocoa finished the day down 3.70 kobo at 26 kobo. To finish at 29 kobo, Regency Insurance was down 3.33 %. Jaiz Bank lost 3.30 kobo to end the day at 88 kobo. PZ Cussons lost 3.26% of its value to close at N10.40 kobo. Mutual Benefit Assurance dropped 3.03 to close at 32 kobo.
Other companies that suffered losses in yesterday’s trades include Royal Exchange Assurance, Lafarge WAPCO, Nigerian Breweries, Ecobank TransNational Incorporated, and Champion Breweries, which closed at N67, N25.25, N37, N10.55, and N4.79 kobo, respectively, after losing 2.90, 2.70, 2.63, 2.31, and 2.24 percent each.
The company that saw the biggest price increase, 6.67%, to close at 48 kobo per share was Courteville Business Solutions.
Following closely behind with gains of 2.70 percent to close at N1.90 and 1.75 percent to conclude at 58 kobo per share, respectively, were NPF Microfinance Bank and AIICO Insurance. Zenith Bank gained 0.20 percent to settle at N25.00 per share, while FBN Holdings (FBNH) increased by 0.92 percent to close at N11.00.
As opposed to 139.560 million shares for N3.873 billion in 2912 deals, investors exchanged 100.882 million shares worth N4.342 billion in 3279 deals for a decrease of 38.678 million shares, or 27.71 percent, in the volume of trading for the day.
Guaranty Trust Holding Company (GTCO) share transactions, totaling 12.836 million shares valued at N318.513 million, topped the list of activities. With 11.920 million shares valued N297.982 million, Zenith Bank came in second.
10.038 million shares of United Bank for Africa (UBA) worth N80.242 million were traded. While FBNH traded 7.719 million shares worth N84.577 million, MTNN traded 8.264 million shares worth N1.927 billion.
