Stock Market Drops by N102.55bn Amid Ongoing Nationwide Strike

Kayode Tokede

The Nigerian stock market depreciated by N102.55 billion as investors marked  FBN Holdings (FBNH) Plc and 16 others for profit-t-taking amid the ongoing nationwide strike imposed by the organized labour unions.

As Nigerian unions began an indefinite strike, Nigerian Exchange Limited (NGX), financial institutions , schools and public offices were also closed in Lagos.

The strike also impacted activities at airports and shutting down the national power grid after organized labour unions talks with the Federal Government ended in deadlock.

Market indicators revealed that the NGX All-Share Index (ASI) depreciated by 111.52 basis points or 0.11 per cent to close at 99,118.86 basis points.

Consequently, market capitalisation shed N102.55 billion to close at N56.070 trillion.

The downturn was driven by price depreciation in large and medium capitalised stocks amongst which are; FBNH, Lafarge Africa, eTranzact International, Nigerian Breweries and Transnational Corporation (Transcorp).

However, investor sentiment, as measured by market breadth closed positive as 23 stocks advanced, while 17 declined. Cornerstone Insurance and Deap Capital Management and Trust emerged the highest price gainer of 10 per cent each to close at N2.09 and 44 kobo respectively, while Oando followed with a gain of 9.75 per cent to close at N12.95, per share.

Veritas Kapital Assurance declined by 8.47 per cent to close at 64 kobo, while while R.T. Briscoe Nigeria advanced by 8.33 per cent to close at 52 kobo, per share.

On the other side, eTranzact International led others on the losers’ chart with 9.82 per cent to close at N5.05, per share. Unity Bank followed with a decline of 9.80 per cent to close at N1.38, while Jaiz Bank shed 9.65 per cent to close at N2.06, per share.

McNichols lost 9.09 per cent to close at N1.00, while Japaul Gold & Ventures depreciated by 4.78 per cent to close at N2.09, per share.

Also, the total volume traded declined by 19.5 per cent to 349.590 million units, valued at N5.237 billion, and exchanged in 8,082 deals. Transactions in the shares of Veritas Kapital Assurance led the activity with 57.951 million shares worth N35.944 million. Guaranty Trust Holding Company (GTCO) followed with an account of 47.634 million shares valued at N1.888 billion, while Access Holdings traded 46.322 million shares valued at N796.316 million.

AIICO Insurance traded 30.706 million shares worth N30.796 million, while Regency Alliance Insurance traded 14.555 million shares worth N5.636 million.

This week, United Capital Plc said “we expect the mixed sentiments amongst investors to persist in the local equities market. On one hand, we expect pockets of buy-interests in the market as market participants take positions in fundamentally sound stock given their low pricings.

“Nevertheless, we still anticipate that the high returns in the fixed-income market will continue to negatively impact the equities market as investors swit

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