Negative Sentiments persisted in the equities sector of the Nigerian Exchange Limited (NGX) yesterday as investors continued to offload their holdings in stocks, causing market capitalisation to decline further by N32 billion.
At the close of transactions, the All-Share Index (ASI) shed 56.43 points, representing a loss of 0.06 percent to close at 97,774.22 points. Also, market capitalisation declined by N32 billion to close at N55.514 trillion.
The downturn was driven by price depreciation in large and medium-capitalised stocks: Julius Berger, Nigerian Aviation Handling Company (NAHCO), United Capital, NASCON Allied Industries, and Nigerian Breweries.
On what will shape the market in the next trading session, analysts at Vetiva Dealings and Brokerage said: “Following the marginal 75bps gain in June, the market lost 228bps this month, as the environment remains unfavorable towards the equity market.
“Barring a significant shift in the local capital markets environment that would benefit the equity space, we anticipate a flat to negative tilt in market sentiment on the back of this.”
SCM Capital said: “The bearish trend is expected to persist as market players continue to digest the outcome of the recently published economic data and the interest rate hike by the apex bank.
“Further, the continued rise in yield levels within the fixed income and money market spaces is likely to maintain the unattractiveness of equities, as investors opt for the appealing yields.”
As measured by market breadth, market sentiment was negative, as 27 stocks gained relative to 29 losers. Industrial and Medical Gas Nigeria, Veritas Kapital Assurance, and University Press emerged as the highest price gainers of 10 per cent each to close at N14.30 kobo, 99 kobo, and N2.42 respectively.
Cornerstone Insurance followed with a gain of 9.63 per cent to close at N2.05 kobo, while Academy Press advanced by 9.50 per cent to close at N1.96 kobo.
Conversely, Berger Paints, Cutix, and NAHCO led others on the losers’ chart with 9.87 kobo. Nigerian Breweries followed with a decline of 9.82 per cent to close at N25.25 kobo while SCOA Nigeria shed 9.77 per cent to close at N1.94 kobo.
The total volume of trades increased by 360.25 per cent to 1.838 billion units, valued at N23.114 billion, and exchanged in 10,847 deals. Transactions in the shares of Fidelity Bank led the activity with 1.331 billion shares worth N14.042 billion.
Zenith Bank followed with an account of 83.89 million shares valued at N2.839 billion, while Veritas Kapital Assurance traded 45.372 million shares valued at N44.584 million.
Oando traded 43.1112 million shares worth N1.112 billion, while the United Bank for Africa (UBA) traded 35.326 million shares worth N701.680 million.
