Price losses by 24 stocks extended the bearish trend at the Nigerian equities for the second day. Having opened 2019 on a negative note on Wednesday, the market recorded another decline yesterday following losses by bellwethers.
Specifically, the Nigerian Stock Exchange (NSE)All-Share Index (ASI) shed 0.96 per cent to close lower at 30,771.32, while market capitalisation went down to N11.47 trillion.
Although the market recorded 24 price losers, depreciation by banking stocks such as Ecobank Transnational Incorporated, Zenith Bank Plc, FBN Holdings Plc and GTBank Access Bank Plc led to the negative close for the day.
However, Glaxosmithkline Consumer Nigeria Plc led the price losers with 10 per cent, trailed by University Press Plc with 9.6 per cent. MCNichols shed 8.5 per ent, just as First Alumium and FCMB Group Plc dipped by 8.3 per cent apiece. Diamond Bank Plc closed 6.9 per cent lower as profit taking set after a major price rally.
Transcorp Plc, Access Bank Plc and Cement Company of Northern Nigeria Plc shed 6.2 per cent, 5.3 per cent and 4.9 per cent in that order.
Sovereign Trust Insurance Plc, GTBank Plc and Lafarge Africa Plc were also among the price losers, going down by 4.7 per cent, 4.4 per cent and 4.1 per cent respectively.
Market analysts said the loss by Lafarge Africa Plc has depressed its price to N11.50, which is below its Rights Issue price of N12.00 per share. Lafarge Africa Plc had last month applied to raise N89.21 billion from existing shareholders through a rights issue
“Following the resolution of our shareholders passed at the extra- ordinary general meeting(EGM) held on the 25thSeptember 2018, the board of directors has approved the terms of the Rights Issue. Lafarge Africa Plc will raise N89.21billion by way of a rights issue at N12.00 per share, by issuing six new shares for every seven shares held by shareholders at the qualification date, which will be announced,” the company said.
Meanwhile, Forte Oil Plc led the 13 stocks that appreciated in price yesterday, chalking up 9.6 per cent. Union Bank of Nigeria Plc trailed with 8.0 per cent, just as Transnationwide Express Plc chalked up 7.6 per cent. Julius Berger Nigeria Plc garnered 5.2 per cent, while Jaiz Bank Plc, Vitafoam Nigeria Plc and Sterling Bank Plc went up by 3.8 per cent, 3.5 per cent and 3.1 per cent respectively.