As NGX places GTBank shares on full suspension 

By Nkiruka Nnorom

The equities market has halted its two weeks steady price appreciation following losses recorded by some blue chip companies last week, including Airtel Africa Plc, Okomu Oil Palm Plc, and Stanbic IBTC Holdings Plc.

This is even as investment analysts have predicted that the market would record a mixed performance as a result of portfolio rotation by investors.

Meanwhile, the Nigerian Exchange (NGX) Limited has placed the shares of Guaranty Trust Bank on full suspension in preparation for the eventual delisting of the bank’s shares from the Daily Official List of the NGX and listing of the holding company, Guaranty Trust Holding Company Plc in the market.

The suspension, according to the NGX in a notice to the dealing members, took effect on Friday, June 18, 2021.  

Analysis of the week’s transactions showed that although the market closed positive on three of the week’s four trading sessions, the gains were insufficient to push the market to a green close for the week. 

READ ALSO

According to investment analysts, investors took full advantage of the gains recorded over the last two weeks in booking profit on bellwether stocks, leading to the losses recorded last week. 

Precisely, the NGX All Share Index (ASI) shed 1.3 percent to close at 38,648.91 points following a 10.0 percent, 9.4 percent  and 4.9 percent losses in Airtel Africa, Okomu Oil and Stanbic IBTC Holding Plc respectively. 

Also,  the market capitalisation of all listed equities fell by the same margin to close at N20.409 trillion resulting in N266 billion losses to investors.

Sectoral performance was broadly positive as the banking (+1.1%), oil and gas (+1.0%), insurance (+0.8%), and consumer goods (+0.2%) sectors recorded gains, while the industrial goods sector closed flat.

Analysts at Codros Capital observed that market performance would remain mixed as investors rotate their portfolio towards dividend-paying stocks, which intermittent profit-taking activities would match. 

However, analysts at Cowry Asset Management posited that the market may trade positive as investors’ position in stocks of companies likely to pay interim dividend.

Disclaimer

Comments expressed here do not reflect the opinions of vanguard newspapers or any employee thereof.