Nigerian Bourse Slides by N545bn over Selloffs in Airtel
The Nigerian stock market lost N545 billion on Tuesday following selloffs in Airtel Africa Plc.’s shares in what appears to be correction of the telecom giant’s overpriced stocks.
In two days, the telecom company’s share price has lost 20% of its market valuation while combine loss in the local bourse inched upward to N1.2 trillion.
Year to date return moderated to 6.2% over large losses reported in the last two day; MarketForces Africa reported that equities market was down by N655 billion on Monday.
On the back of its fresh downward price movements, the equities segment of the Nigerian Exchange capitalisation fell by N545 billion or 2.16 per cent to close at N24.709 trillion in contrast with N25.254 trillion posted on Monday.
Similarly, the All Share Index shed 999.63 points or 2.16 per cent to 45,366.32, compared with 46,365.95 achieved on Monday.
The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are: Airtel Africa Nigerian Breweries and Jaiz Bank. UCAP led the gainer’s table with 9.69 per cent to close at N12.45 per share.
Regency Alliance Insurance followed with a gain of 8.33 per cent to close at 26k, while Sovereign Trust Insurance grew by 7.69 per cent to close at 29k per share. Mutual Benefits Assurance advanced by 7.41 per cent to close at 29k per share.
Honeywell Flour gained by 6.84 per cent to close at N2.50 per share. On the other hand, Airtel Africa led the laggard’s table, depreciating by of 10 per cent to close at N1, 458 per share. READ:Stock Market Returns Positive as Airtel Seeks to Buy Back Shares
Nigerian Breweries followed with a loss of 9.8 per cent to close at N41.90, while CWG declined by 8.64 per cent to close at 74k. Also, Jaiz Bank depreciated by 5.56 per cent to close at 85k per share. Courteville Business Solutions fell by 4.17 per cent to close at 46k.
A total of 420.28 million shares valued at N3.62 billion were exchanged in 3,486 deals. CWG recorded the highest volume with 258.79 million traded shares valued at N191.51 million.
Guaranty Trust Holding Company (GTCO) followed by trading 57.42 million shares worth N1.07 billion, while Zenith Bank sold 13.16 million shares valued N768.75 million. Fidelity Bank transacted 12.49 million shares worth N44.5 million.
Performance across sector was mixed, as the Industrial Goods (+1.4%), Banking (+1.0%), and Insurance (+0.5%) indices advanced, while the Consumer Goods (-1.1%) and Oil & Gas (-0.3%) indices closed in the red.
# Nigerian Bourse Slides by N545bn over Selloffs in Airtel#
