Stock market loses N277bn in value

By Omobayo Azeez

The aggregate value of stocks listed at the Nigerian Stock Exchange (NSE) nosedived as the equities market opened on Monday by losing N277 billion at the close of the session.

The negative trend was principally fuelled by sell-offs in the stocks of MTN Nigeria and tier-1 banks’ stocks, dragging down All-Share Index (ASI) by 2.4 per cent to 21,330.79 points.

Similarly, market capitalization depreciated in the percentage to close lower at N11.117 billion after shedding N277 billion.

The loss of the day represents yet the biggest daily loss of the benchmark index since falling 2.9 per cent on March 19, consequently, worsening Month-to-Date (MtD) and Year-t0-Date (YtD) losses to 18.6 per cent and 20.5 per cent respectively.

The total volume of trades increased by 85.7 per cent to 466.91 million units, valued at N1.93 billion and exchanged in 3,659 deals. While MEYER was the most traded stock by volume at 200.99 million units, Zenith Bank was the most traded stock by value at N574.35 million.

Analysing by sector, performances were broadly negative as losses were recorded in the banking index -3.6 per cent; consumer goods index by -1.0 per cent and insurance index by -0.5 per cent. However, the oil and gas index advanced by 1.8 per cent while the industrial goods index was flat.

This week, analysts at Imperial Asset Managers Ltd. said: “We expect market sentiment to remain volatile, given the circumstances surrounding oil prices and macro-economy development.

“We also expect investors to react positively to healthcare quoted stocks amid the fiscal and monetary stimulus channelled to the sector in a desperate move to combat the COVID-19 pandemic,” they said.

MTN Nigeria led the losers’ chart in percentage terms, dropping by 10 per cent to close at N0.90 per share. Wema Bank followed with a decline of 9.62 per cent to close at N0.47, while International Breweries declined by 9.26 per cent to close at N4.90 per share.

Prestige Assurance and United Capital shed 8.33 per cent each to close at N0.55 and N2.20 per share, respectively.

On the flip side, Berger Paints dominated the gainers’ chart in percentage terms, gaining 9.84 per cent to close at N6.70 per share. Mobil followed with 9.83 per cent to close at N160.90, while Cadbury Nigeria appreciated by 9.68 per cent to close at N6.80 per share.

Meanwhile, DN Meyer grew by 8.70 per cent to close at N0.50, while Africa Prudential improved by 8.19 per cent to close at N3.70 per share.

In spite of the drop in market indices, the volume of shares traded closed upbeat as investors bought and sold 466.91 million shares worth N1.93 billion traded in 3,659 deals.

This was in contrast with 261.41 million shares valued at N3.36 billion transacted in 3,968 deals on Friday.

Transactions in the shares of DN Meyer topped the activity chart with 200.99 million shares valued at N92.46 million.

Champion Breweries followed with 89.34 million shares worth N61.67 million, while Zenith Bank traded 48.19 million shares valued at N574.35 million.

United Bank for Africa sold 19.16 million shares worth N98.79 million, while FBN Holdings accounted for 18.81 million shares valued at N75.16 million.