Stock Market Depreciates by N639bn after Six-day Gaining Streak

Kayode Tokede

The Nigerian equities market yesterday depreciated by N639billion after six-day gaining streak that moved the market capitalisation to over N45 trillion.

Specifically, the stock market that opened trading at N45.524 trillion in market capitalisation, dropped by N638 billion or 1.4per cent to close to N44.885 trillion.

The stock market the previous day appreciated by N1.6trillion as investors’ surge for large-medium stocks drove the overall market capitalisation to N45.524trillion from N43.957trillion.

Despite dropping N639billion yesterday in market capitalisation, the stock market this week has gained N1.29trillion when it opened at N44.885trilliion.

Consequently, the NGX All-Share Index yesterday dropped by 1,167.46basis points or 1.40per cent to close at 82,024.38 basis points from 83,191.84 basis points it opened for trading.

The stock market downturn performance yesterday as driven by price depreciation in large and medium capitalised stocks amongst which are; MTN Nigeria Communications (MTNN), Zenith Bank Plc, Guaranty Trust Holding Company (GTCO) Plc, and United Bank for Africa (UBA) Plc

As MTN Nigeria dropped by 4.41 per cent to N282.00per share, the stock price of Zenith bank was down by 9.93per cent to N42.65 per share.

For GTCO, its stock price was down by 8.71 per cent to N44.00 per share, while UBA tumbled by 9.97per cent to close N29.35 per share.

Analysing by sectors, the NGX Banking Index dropped by eight per cent, NGX Insurance dropped by 6.1per cent and NGX Oil & Gas also down by 0.4per cent, while the NGX Consumer Goods appreciated by 2.5per cent and NGX Industrial Goods gained 1.4per cent.

As measured by market breadth, market sentiment was negative, as 13 stocks gained relative to 62 losers.

Cadbury Nigeria emerged the highest price gainer of 9.92 per cent to close at N19.95, per share. Veritas Kapital Assurance followed with a gain of 9.76 per cent to close at 45 kobo, while Linkage Assurance rose by 8.70 per cent to close at N1.50, per share.

Transcorp Hotels increased by 7.24 per cent to close at N100.00, while Prestige Assurance added 6.00 per cent to close at 53 kobo, per share.

On the other side, Chams Holding Company, Cornerstone Insurance, FTN Cocoa Processors, May & Baker, Caverton Offshore Support Group and Consolidated Hallmark Holdings led the losers’ chart with 10 per cent each to close at N2.16, N1.80, N1.98, N5.49, N2.07 and N1.35 respectively, per share.

UBA followed with a decline of 9.97 per cent to close at N29.35, while United Capital and Ikeja Hotels shed 9.95 per cent each to close at N24.90 and N8.69 respectively, per share.

Meanwhile, the total volume traded rose by 16.42 per cent to 1.641 billion units, valued at N25.3778 billion, and exchanged in 20,223 deals. Transactions in the shares of Transnational Corporations (Transcorp) led the activity with 177.639 million shares worth N1.542 billion. Access Holdings followed with account of 116.649 million shares valued at N3.259 billion, while Sterling Financial Holdings Company traded 116.295 million shares valued at N774.996 million.

Jaiz Bank traded 100.070 million shares worth N282.658 million, while AIICO Insurance traded 91.790 million shares worth N127.859 million.