Stock Market Down N429.8bn on Profit-taking in Airtel Africa

Kayode Tokede

Trading activities on the floor of the Nigerian Exchange (NGX) closed on a bearish note as investors  lost N429.8 billion in market capitalization following profit-taking in Airtel Africa Plc, 15 others.

The NGX All Share Index (ASI) decreased by 1.52per cent to close at 50,868.52 basis points from 51,657.56 basis points it opened for trading, while the market capitalisation down by N429.8billion to close at N27.707 trillion from N28.136 trillion it opened for trading yesterday.

Accordingly, sectoral performance was relatively positive as the NGX Consumer Goods added 1.33per cent, NGX Banking index increased by 0.8per cent and NGX Oil and Gas index rose by 0.09per cent, while the Industrial sector closed flat.

As measured by market breadth, market sentiment was positive (1.3x) as 19 stocks gained relative to 15 losers.

Prestige Assurance leads the losers table, dropping by 8.70 per cent to N0.42 per share, followed by Airtel Africa that depreciated by 8.26 per cent to close at N1,500 per share.

UPL Plc was down by 7.37 per cent to N1.76 as NPF Microfinance bank declined by 7.10 per cent to close at N1.76 per share.

In addition, Royal Exchange down by 6.36 per cent to close trading yesterday at N1.03 per share.

On the gainers chart, Johnholt Plc appreciated by 10 per cent to N0.88 per share as Honeywell Flour Plc gained 9.96 per cent to N2.43 per share. CWG added 9.78 per cent to N1.01 per share as UACN rose by 4.88 per cent to N10.75 per share.

NB was among the top five gainers yesterday, gaining N4.21 per share to close at N47 per share.

In terms of activity levels, total volume and value decreased by 57per cent and 58 per cent respectively, as investors exchanged about 139 million units of shares worth N1.83 billion.

Sterling bank Plc dropped by 2.10 per cent, the most actively traded stock with about 29 million units of shares worth about N41 million.

According to analysts at InvestmentOne Research, “The equities market closed negative today due to the loss printed in Airtel Africa.

“Going forward, we expect investor’s sentiments to be swayed by the search for real positive returns and developments in the interest rate space.

“We reiterate that this may be a great period to pick up some quality names with a medium to long-term investment horizon.”