Stock Market Drops by N1.65tn Ahead of Dangote Refinery IPO
Kayode Tokede
The Nigerian stock market yesterday extended its downward trend, shedding N1.67 trillion by market capitalisation days to the Initial Public Offer (IPO) of Dangote Refinery.
The All-Share Index declined by 2,579.01 basis points or 1.05 per cent to close at 242,223.10 basis points. Similarly, the overall market capitalisation value shed N1.67 trillion to close at N157.050 trillion.
The market negative performance was driven by price depreciation in large and medium capitalised stocks which are; Nestle Nigeria, BUA Cement, Nigerian Breweries, Cadbury Nigeria and Oando.
The decline marked a second consecutive bearish session and reduced the year-to-date (YtD) return to 55.66 per cent. Selling pressure remained broad-based, with heavyweight consumer and industrial names contributing to the weakness.
Investor sentiment remained negative, as 43 losers largely outpaced 11 gainers. Champion Breweries recorded the highest price gain of 9.90 per cent to close at N11.10, per share. VFD Group followed with a gain of 9.52 per cent to close at N11.50, while UPDC up by 5.88 per cent to close at N3.60, per share.
Ikeja Hotel appreciated by 4.58 per cent to close at N44.50, while Cutix rose by 3.06 per cent to close at N2.36, per share.
On the other hand, FTN Cocoa Processors, Japaul Gold & Ventures, McNichols, Omatek Ventures, Secure Electronic Technology, Zichis Agro-Allied Industries and BUA Cement led the losers’ chart by 10 per cent each to close at N7.65, N2.34, N4.50, N1.35, 63 kobo, 15.39 and N278.10 respectively, per share.
Cadbury Nigeria down by 9.94 per cent to close at N58.45, while International Energy Insurance declined by 9.88 per cent to close at N2.28, per share.
The total volume traded declined by 29.0 per cent to 534.45 million units, valued at N22.28 billion, and exchanged in 46,943 deals. Transactions in the shares of Mutual Benefits Assurance topped the activity chart with 75.336 million shares valued at N215.432 million. Sterling Financial Holdings Company followed with 62.466 million shares worth N462.319 million, while Access Holdings traded 20.929 million shares valued at N562.963 million.
Zenith Bank traded 16.821 million shares valued at N2.030 billion, while Guaranty Trust Holding Company (GTCO) transacted 16.740 million shares worth N2.145 billion.
On market outlook, Cowry Assets Management Limited said “the market is anticipated to remain under downward pressure as investors continue liquidating positions ahead of the Dangote Refinery IPO, which is set to commence at the start of the coming week.”
