Market News

Heavy losses suffered by many blue-chip companies, especially Airtel Africa and Seplat dragged market capitalisation of the Nigerian Exchange Limited (NGX) by N662 billion yesterday.

Specifically, market capitalisation of listed equities declined by 2.08 per cent to N29.281 trillion from N29.903 trillion reported on Friday. Also, the All Share Index also dropped by 1141.76 basis points to 53750.77 points from 54892.53 traded the previous day.

The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are; Airtel Africa, Seplat Energy, MTN Nigeria Communications (MTNN), Nigerian Breweries and Lafarge Africa.

Analysts at United Capital Plc said, “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 said: “Sell pressure continues to drive the market south as sellers outweigh buyers. We anticipate a mixed trading session tomorrow amid mild recoveries.”

The market breadth was negative as 21 stocks lost relative to five gainers.

NCR Nigeria led the losers’ chart by 9.79 per cent to close at N2.12, per share. Unity Bank followed with a decline of 9.43 per cent to close at 48 kobo.

Prestige Assurance declined by 8.89 per cent to close at 41 kobo, per share.

SUNU Assurance declined 8.33 per cent to close at 44 kobo, while Multiverse Mining and Exploration and Airtel Africa shed 8.31 per cent each to close at N2.98 and N1,420.00 respectively, per share while Seplat depreciated by 4.17 per cent to close at N1,150.00 .
FTN Cocoa lost 3.70 kobo to close at 26 kobo. Regency Insurance dropped 3.33 per cent to close at 29 kobo. Jaiz Bank declined by 3.30 kobo to close at 88 kobo. PZ Cussons depreciated by 3.26 per cent to close at N10.40 kobo. Mutual Benefit Assurance lost 3.03 to close at 32 kobo.

Other losers of yesterday’s transactions include: Royal Exchange Assurance, Lafarge WAPCO, Nigerian Breweries, Ecobank TransNational Incorporated and Champion Breweries, shedding 2.90 per cent, 2.70 per cent, 2.63 per cent, 2.31 per cent and 2.24 per cent to close at N67 kobo, N25.25 kobo, N37, N10.55 kobo and N4.79 kobo.

Courteville Business Solutions recorded the highest price gain of 6.67 per cent to close at 48 kobo, per share. NPF Microfinance Bank followed with a gain of 2.70 per cent to close at N1.90 and AIICO Insurance up by 1.75 per cent to close at 58 kobo, per share. FBN Holdings (FBNH) rose by 0.92 per cent to close at N11.00, while Zenith Bank gained 0.20 per cent to close at N25.00, per share.

Volume of trades for the day declined by 38.678 million, representing 27.71 per cent as investors exchanged100.882 million shares valued at N4.342 billion in 3279 deals against 139.560 million shares worth N3.873 billion in 2912 deals.

Transactions in the shares of Guaranty Trust Holding Company (GTCO) topped the activity chart with 12.836 million shares valued at N318.513 million. Zenith Bank followed with 11.920 million shares worth N297.982 million.

United Bank for Africa (UBA) traded 10.038 million shares valued at N80.242 million. MTNN traded 8.264 million shares valued at N1.927 billion, while FBNH transacted 7.719 million shares worth N84.577 million.