NGX: Market Capitalisation Plunges Further By N167bn

The Nigerian Exchange Limited (NGX) extended bearish sentiment to three consecutive trading sessions yesterday, as more highly capitalised stocks depreciated in price. This resulted to a further slide in market capitalisation by N167 billion.

The All-Share Index (ASI) decreased by 319.08 absolute points, representing a drop of 0.81 per cent to close at 39,114.73 points while the overall market capitalisation value lost N167 billion to close at N20.470 trillion.

The bearish sentiment was sustained on price depreciation in large and medium capitalised stocks amongst which are; MTN Nigeria Communications (MTNN), Dangote Cement, BOC Gases, Red Star Express and SCOA Nigeria.

Analysts at Afrinvest Limited said: “We expect the market to close in the red for the week.”

Analysts at Vetiva Dealing & Brokerage said: “With the week drawing to a close and some negative activity on large caps such as MTNN and DANGCEM keeping the market in negative territory, we expect tomorrow’s session to close out the week on a bearish note.”

However, investor sentiment as measured by market breadth was positive, as 25 stocks gained, relative to 20 losers. Conoil and Courteville Business Solutions recorded the highest price gain of 10 per cent each to close at N18.70 and 22 kobo, respectively, while Seplat Petroleum Development Company (SEPLAT) followed with a gain 9.99 per cent to close at N604.40 kobo.

Linkage Assurance rose by 8.62 per cent to close at 63 kobo, while Access Bank appreciated by 5.19 per cent to close at N8.10kobo. On the other hand, BOC Gases led the losers’ chart by 9.99 per cent, to close at N12.25, per share. Livestock Feeds followed with a decline of 9.90 per cent to close at N1.73, while SCOA Nigeria shed 9.66 per cent to close at N2.15 kobo.

Red Star Express shed 9.59 per cent to close at N3.11, while Regency Alliance Insurance depreciated by 9.38 per cent to close at 29 kobo.

The total volume of trades increased by 15.2 per cent to 403.512 million units, valued at N4.810 billion, and exchanged in 4,342 deals. Transactions in the shares of Access Bank topped the activity chart with 105.868 million shares valued at N844.210 million. NEM Insurance followed with 38.679 million shares worth N77.336 million, while FBN Holdings (FBNH) traded 35.406 million shares valued at N258.661 million.

Zenith Bank traded 29.432 million shares valued at N641.83 million, while Fidelity Bank transacted 22.310 million shares worth N49.602 million.