NGX Loses N464bn as Investors Sell Big Banks Stocks

NGX Loses N464bn as Investors Sell Big Banks Stocks

The Nigerian Exchange (NGX) reported about N464 billion loss first trading session of the week due to profit-taking activities on 43 listed companies’ stocks. Today’s daily loss wiped off a total sum of N337.23 billion gained last week.

The banking index lost more than six per cent due to losses in big banks’ shares. UBA lost 9.18% of its market value to exit trading. GTCO went down by 8.62%, and ACCESSCORP gave up 8.57% of its market value due to negative price movement.

Despite unrealised FX gain driven profitability improvement, unimpressed investors dumped ZENITH BANK and its share price declined by 5.82%. MarketForces Africa reported that bargain hunting on the exchange pushed the market capitalization of listed equities upward by 0.91% week-on-week, ascending to a noteworthy N37.30 trillion.

Ahead of Nigeria’s inflation figure this week, the equity market resumed trading activities with selloffs which dragged market performance backwards by 1.24%. Stockbrokers reported there was profit-taking across all the major market sectors, led by the banking sector, which declined by -6.11%.

As a result of the weak outing, the stock market year-to-date return moderated to 31.31%, as investors’ wealth was down by approximately ₦464 billion, Atlass Portfolios Limited told investors in an update.  The market index or the Nigerian Exchange All-share index went down by 847.16 basis points today, representing a decrease of -1.24% to close at 67,296.18 points.

Cowry Asset Managers told investors in a weekend update that the recent ruling from the presidential election tribunal and the decline in money market rates subsequent to the last treasury bills auction played pivotal roles in propelling the All-Share Index (ASI) to reach a new all-time high, surpassing the psychologically significant 68,000 points threshold. 

However, market activities were mixed, as the total volume traded for the day was up by +7.58%, while the total value traded was down by -0.08%. Citing data from the Lagos bourse, market analysts at Atlass Portfolios Limited said approximately 520.13 million units valued at ₦8,334.26 million were transacted in 9,914 deals.

UBA was the most traded stock in terms of volume, accounting for 14.32% of the total volume of trades. The Pan African lender was followed by ACCESSCORP (11.17%), TRANSCORP (10.21%), ZENITH BANK (8.35%), and FBNH (5.15%) to complete the top 5 on the volume chart,

In reaction to its recent earnings release, ZENITHBANK was the most traded stock in value terms, with 18.31% of the total value of trades on the exchange. The price moved negatively, causing the tier-1 lender to lose more than 5% despite an earnings beat.

NNFM topped the advancers’ chart with a price appreciation of 9.96 per cent, trailed by OANDO (9.74%), CWG (+9.00%), NPFMCRFBK (+8.20%), RTBRISCOE (+7.32%), and ten others.

Forty-three stocks depreciated, where ETRANSACT, NASCON and NSLTECH were the top losers, with a price depreciation of -10.00% each.  DANGSUGAR (-9.98%), TRANSCORP (-9.70%), NAHCO (-9.63%), WEMABANK (-9.44%), and GTCO (-8.62%) also dipped in price.

Given the trading pattern, the market breadth closed negative, recording 15 gainers and 43 losers. Also, the market sector performance closed negative, as all the five major market sectors were down.

The declined sectorial performance was led by the Banking sector, which dropped by (6.11%), followed by the Insurance sector’s 2.07% decline.  The Consumer goods sector by fell by 1.45%), while the Industrial sector lost 0.28% and the Oil & Gas sector slumped by 0.10%).

Overall, equities market capitalisation lost ₦463.66 billion, representing a decline of -1.24%, to close at ₦36,831.68 trillion from ₦37,295.34 last week Friday. #NGX Loses N464bn as Investors Sell Big Banks Stocks Naira Devaluation Deepens Economic Crisis in Nigeria

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