On Monday, investors in stocks lost almost N103 billion, as the Nigerian Exchange (NGX) began the week with a negative value. Following sell-offs in Tier-one banking equities and cautious trading, investors lost N102.55 billion, putting an end to the local bourse’s winning streak from the previous session.
The market’s poor performance was specifically caused by sell-offs in the following declining stocks: FBN Holdings, United Bank for Africa (UBA), Access Corporation, Fidelity Bank, Transnational Corporation, Nigerian Breweries, WAPCO, and ETranzact.
Because of this, the market capitalization, which was initially valued at N56.172 trillion, closed at N56.069 trillion, down N103 billion, or 0.18 percent. In addition, the All-Share Index dropped 112 points, or 0.18 percent, to end at 99,118.86 from Friday’s reading of 99,300.38. Consequently, the Year-To-Date (YTD) return decreased to 32.56%.
However, while investors traded cautiously, the losses recorded on the exchange was not related to the ongoing indefinite strike embarked upon by workers under the auspices of the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC).
Reacting, a stockbroker with Global View Capital Ltd., Mr Haruna Kebira, said that trading on the exchange was not usually affected by such national industrial actions, except for public holidays declared by the Federal Government.
Kebira explained that this was because the Exchange Group did not belong to any workers’ union; hence, labour union leaders usually did not interrupt trading on the floor of the Exchange during strikes.
The stockbroker noted that the first week of a new month usually experienced a slowdown in activities that might lead to losses experienced during the day’s trading. He stated that the bullish run that dominated the equity market last week was as a result of month-end effect activities.
“The market is expected to pick up positively by mid-week.
“The month of June is usually positive for the market, because investors who just received their dividends are investing back into the market, so the market will surely bounce back,Kebira said.
However, the market breadth closed positive with 23 gainers and 17 losers on the floor of the exchange. On the gainers’ table, Cornerstone Insurance and Deap Capital Management, and Trust Plc led by 10 per cent each to close at N2.09 and 44k per share, respectively.
Oando followed by 9.75 per cent to close at N12.95, Veritas Kapital Assurance rose by 8.47 per cent to close at 64k and RTBriscoe gained 8.33 per cent to close at 52k per share. On the other hand, ETranzact led the losers’ table with 9.82 per cent to close at N5.05 while Unity Bank trailed closely by 9.80 per cent to close at N1.38 per share.
Jaiz Bank declined by 9.65 per cent to close at N2.06, McNichols Plc shed 9.09 per cent to close at N1.00 and Japaul Gold lost 4.78 per cent to close at N1.99 per share. Analysis of the market activities showed trade turnover settled lower relative to the previous session, with the value of transactions down by 38.92 per cent.
A total of 349.59 million shares valued at N5.24 billion were exchanged in 8,082 deals, compared to 434 million shares valued at N8.58 billion exchanged in 8,525 deals posted in the previous session.
Veritas Kapital led the activity chart in volume with 57.95 million shares worth N35.94 million, while Guaranty Trust Holding Company (GTCO) followed by N47.63 million shares valued at N47.63 billion to lead in value. Access Corporation traded 46.32 million shares valued at N796.32 million, AIICO Insurance transacted 30.71 million shares worth N30.79 million; and Regency Alliance Insurance sold 14.55 million shares worth N5.64 million.
