Stock Market Lose N2.42tn in One Week on Negative Sentiments

Kayode Tokede  

The Nigerian stock market closed last week on a negative note, dropping by N2.42 trillion as investors consolidated recent gains across select large capitalised companies  such as Dangote Cement Plc, among others.   

As the stock price of Dangote  Cement dropped by 10 per cent or N107 per share to close at N963 per share, the market capitalisation of listed companies  closed for trading at N148.905 trillion, about N2.4 trillion or 1.6 per cent from N151.327 trillion it opened for trading. 

The Nigerian Exchange Limited All-Share Index (NGX ASI), an indicator that tracks the general market movement of all listed equities on Exchange, including those listed on the Growth Board, regardless of capitalization close for trading at 232,049.02basis points, which is 3,892.25basis points or 1.65per cent from 235,941.27 basis  points it closed for trading last week.

This brings the NGX ASI month-to-date and year-to-date returns to -7.5per cent and +48.9per cent, respectively.

Other major losses last week include: Aradel Holdings that dipped by 19 per cent to close at N1,417.50 per share, followed by BUA Cement that declined by 16.1 per cent to N340.20 per share and Geregu Power Plc that depreciated by 10 per cent to close at N917.40 per share.   

On sector performance, the Oil & Gas (-9.9per cent), Industrial Goods (-8.2per cent), Insurance (-4.4per cent), and Consumer Goods (-1.5per cent indices closed lower, while the Banking (+3.5per cent) index was the sole gainer for last week.

The NGX in its weekly report revealed that a total turnover of 2.324 billion shares worth N134.486 billion in 249,328 deals was traded  last week by investors on the floor of the Exchange, in contrast to a total of 3.075 billion  shares valued at N254.614 billion that exchanged hands in prior week’s 287,157 deals.

The report stated that,  “The Financial Services Industry (measured by volume) led the activity chart with 1.523 billion shares valued at N47.542 billion traded in 105,230 deals: thus contributing 65.53per cent and 35.35per cent to the total equity turnover volume and value respectively. 

“The ICT Industry followed with 198.821 million shares worth N32.622 billion in 29,905 deals. Third place was the Consumer Goods Industry, with a turnover of 151.635 million shares worth N10.933 billion in 23,951 deals.”

The trading in the top three equities, namely Access Holdings Plc, Fidelity Bank Plc and Chams Holding Company Plc (measured by volume), accounted for 485.749 million shares worth  N7.656 billion in 17,843 deals, contributing 20.90per cent and 5.69per cent to the total equity turnover  volume and value respectively.