Investors on the equities market of the Nigerian Exchange Limited (NGX) have lost N440billion in three days as aggressive profit-taking continued in fundamental stocks.
The overall market capitalisation value lost N54 billion to close at N20.089 trillion on Monday, driven by price depreciation in large and medium capitalised stocks amongst which are; Fidson Healthcare, Lasaco Assurance, Oando, Ecobank Transnational Incorporated (ETI) and Dangote Sugar Refinery.
On Tuesday, Western Post gathered that market capitalisation value lost N364 billion to close at N19.725 trillion over price depreciation in large and medium capitalised stocks amongst which are; Airtel Africa, Presco, BUA Cement, Stanbic IBTC Holdings and PZ Cussons Nigeria, pushing the equities market to a new year low.
However, on Wednesday, the equities market closed the trading activities on a decline, thereby stretching the negative sentiment to three consecutive days as investors’ sell-off sentiment in the Financial and the Oil and Gas sectors push down market capitalisation by N22 billion to close at N19.703 trillion
The market loss on Wednesday was driven by price depreciation in large and medium capitalised stocks amongst which are; Zenith Bank, Access Bank. E-Tranzact International, University Press and Ecobank Transnational Incorporated (ETI).
Analysts at Afrinvest Limited said that “In the next trading session, we expect the domestic bourse to extend bearish performance in the absence of any positive catalyst.”
Investor sentiment as measured by market breadth declined, as 11 stocks advanced while 23 declined. FTN Cocoa Processors recorded the highest price gain of 10 per cent to close at 33 kobo, per share. Ikeja Hotel followed with a gain 9.89 per cent to close at N1.00, while Cornerstone Insurance went up by 9.80 per cent to close at 56 kobo, per share.
Linkage Assurance rose by 9.09 per cent to close at 60 kobo, while Mutual Benefits Assurance gained 5.26 per cent to close at 40 kobo, per share. On the other hand, Royal Exchange led the losers’ chart by 10 per cent to close at 63 kobo, per share. Japaul Gold and Ventures followed with a decline of 9.80 per cent to close at 46 kobo, while University Press lost 9.52 per cent to close at N1.52, per share.
Consolidated Hallmark Insurance lost 9.38 per cent to close at 58 kobo, while E-Tranzact International shed 8.44 per cent to close at N2.06, per share.
The total volume of trades fell by 4.5 per cent to 208.356 million units, valued at N1.603 billion, and exchanged in 3,365 deals.
Transactions in the shares of Zenith Bank topped the activity chart with 33.682 million shares valued at N795.027 million.
E-Tranzact International followed with 20.950 million shares worth N43.158 million, while Fidelity Bank traded 13.680 million shares valued at N31.383 million.
Royal Exchange traded 13.117 million shares valued at N8.278 million, while Japaul Gold and Ventures transacted 13.002 million shares worth N6.126 million.