Market capitalisation slips to N88.9tn amid bearish run

cover, Financial Markets

The Nigerian Exchange closed negative on Thursday as bearish trading sentiments wiped off N438bn from investors’ wealth, dragging the equities market capitalisation to N88.9tn at the end of the day’s transactions.

The All-Share Index shed 691.52 points, or 0.49 per cent, to close at 140,557.24 points compared with 141,248.76 points recorded in the previous session. This downturn trimmed the Exchange’s week-to-date gain to 0.16 per cent and month-to-date return to 0.5 per cent, though the year-to-date growth remains strong at 36.56 per cent.

Market turnover also showed heightened activity as investors exchanged 884.96m shares valued at N28.25bn in 26,129 deals. This represented a 30 per cent improvement in volume and a 27 per cent rise in value, even though the number of deals declined nine per cent when compared with Wednesday’s trading session.

A total of 129 equities participated in trading, with 19 gaining and 39 losing. SCOA Nigeria led the gainers’ chart with a 10 per cent rise to close at N6.05 per share, followed by RT Briscoe, which appreciated 9.8 per cent to N3.36. N.E.M Insurance gained 7.96 per cent to settle at N31.20, while Nigerian Exchange Group advanced 7.94 per cent to N57.80 per share.

On the other hand, International Energy Insurance recorded the worst performance of the day after its share price dropped 9.62 per cent to N3.29. Omatek Ventures declined 8.97 per cent to close at N1.32, Ellah Lakes shed 8.49 per cent to N13.68, while Royal Exchange depreciated 6.98 per cent to N2.00 per share.

Champion Breweries led activity in volume with 201.05m shares worth N3.47bn, followed by Access Holdings with 102.18m shares valued at N2.76bn. Guaranty Trust Holding Company traded 96.45m shares worth N8.89bn to emerge as the most traded stock by value. Sterling Bank followed with 90.82m shares valued at N726.59m, while FBN Holdings exchanged 46.25m units worth N1.50bn.

Sectoral performance was largely negative as the Premium Index shed 0.44 per cent, the Industrial Index lost 0.45 per cent, and the Main Board Index dipped 0.53 per cent. However, the Insurance Index gained 0.44 per cent, extending its one-week rise to 7.62 per cent and its year-to-date return to an impressive 81.56 per cent.

Analysts noted that profit-taking in large-cap stocks and sustained sell-offs across major sectors contributed to the day’s bearish outing.