Recession: NSE trading reopens negative as capitalisation drops by N8b

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Factual Pursuit of Truth for Progress

 

By Francis Ogwo

The impact of the current recession seems to have been felt in the trading on the equities sector.

This is with the Nigerian Stock Exchange (NSE) reopening on Monday with a downturn causing the market capitalisation to depreciate by N8 billion.

The All-Share Index (ASI) shed 15.04 absolute points, representing a decline of 0.04 per cent to close at 34,121.78 points. Similarly, the overall market capitalisation value fell by N8 billion to close at N17.830 trillion.

The drop on Monday was driven by losses in medium and large capital stocks amongst which were; Stanbic IBTC Holdings, Lafarge Africa, Flour Mills of Nigeria, Guinness Nigeria, and Ardova Plc.

On the stock market outlook for this week, analysts at United Capital Plc said: “In all, we anticipate a rebound in domestic equities on the back of the persistent declines in fixed income yields as well as elevated financial system liquidity.”

Sentiment, as measured by market breadth, was negative, as five stocks gained, relative to 46 losers. Airtel Africa recorded the highest price gain of five per cent to close at N525.00, per share.

BUA Cement followed with a gain of 4.77 per cent to close at N56.00, while Dangote Cement rose 3.42 per cent to close at N199.80 per share.

There was advancement by Nestle Nigeria by 1.82 per cent to close at N1,400.00, and NEM Insurance appreciated 0.78 per cent to close at N2.60 per share.

Custodian Investment, Ardova, Honeywell Flour Mill, Lafarge Africa, Livestock Feeds and Transnational Corporation of Nigeria led the losers’ chart by 10 per cent each, to close at N5.85, N13.50, N1.08, N22.05, N1.26, and 90 kobo, respectively, per share.

Oando followed with a decline of 9.97 per cent to close at N2.89, and Neimeth International Pharmaceuticals shed 9.96 per cent to close at N2.17 per share.

However, the total volume traded increased by 64.69 per cent to 568.037 million shares, worth N7.326 billion, and traded in 8,928 deals. Transactions in the shares of Zenith Bank topped the activity chart with 79.741 million shares valued at N1.913 billion.

United Bank for Africa (UBA) traded 46.969 million shares at N360.036 million, and Guaranty Trust Bank transacted 37.097 million shares worth N1.266 billion.

FBN Holdings (FBNH) followed with 72.749 million shares worth N499.577 million, while Access Bank traded 65.741 million shares valued at N520.344 million.

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