June 15, 2020

Stock market opens week with N119bn loss

Stockmarket, week



Nigerian equities market resumed trading on Monday with a loss of 0.91 percent as a result of profit-taking in some blue chips.

Specifically, the All-Share Index which opened the week at 25,182.67 lost 228.35 points or 0.91 percent to close at 24,954.32.

Accordingly, Month-to-Date and Year-to-Date losses increased to -1.2 percent and -7.0 percent, respectively.

Also, the market capitalization shed N119 billion or 0.91 percent to close at N13.017 trillion against N13.136 trillion posted on Thursday.

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The downturn was impacted by losses recorded in medium and large capitalized stocks, amongst which are; MTN Nigeria Communications (MTNN), BUA Cement, Zenith Bank, Ecobank Transnational Incorporated and Guaranty Trust Bank.

Analysts at United Capital Plc said: “Looking ahead, we expect the market to remain volatile, as investors lock funds in cheap and fundamentally sound stocks while taking profit on some stocks that gained last week.”

Consequently, market breadth closed negative with 16 stocks compared with 25 decliners.

Prestige Assurance led the losers’ chart in percentage terms, dropping by 10 percent, to close at 63k, per share.

Neimeth International Pharmaceuticals followed with 9.73 percent to close at N2.32, while AIICO Insurance shed 9.32 percent to close at N1.07, per share.

ETI dropped 7.34 percent to close at N5.05, while UACN Property Development dipped 6.73 percent to close at 97k, per share.

Conversely, Fidson Healthcare and Red Star Express led the gainers’ chart in percentage terms, appreciating by 10 percent each to close at N3.30 and N3.63 per share, respectively.

Cornerstone Insurance followed with a gain of 9.80 percent to close at 56k, per share.

Honeywell Flour Mills rose by 9.78 percent to close at N1.01, while Unity Bank appreciated by 8.77 percent to close at 62k, per share.

In the same vein, the total volume traded declined by 29.51 percent with an exchange of 237.65 million shares, worth N1.61 billion, and traded in 4,808 deals.

This was in contrast with a total of 337.13 million shares valued at N3.41 billion achieved in 3,880 deals on Thursday.

Transactions in the shares of FBN Holdings topped the activity chart with 24.35 million shares worth N128.76 million.

Zenith Bank followed with 24.14 million shares valued at N392.36 million, while FCMB Group accounted for 19.47 million shares valued at N33.48 million.

Caverton Offshore traded 17.37 million shares worth N39.02 million, while United Bank for Africa transacted 14.64 million shares valued at N95.74 million.