The Nigerian Exchange Limited (NGX) reopened trading for the month of June on a bearish note as the overall capitalisation declined by N102 billion, amid losses in FBN Holdings (FBNH) Plc and 16 stocks.
The all-share index (ASI) lost 111.52 points, representing a loss of 0.11 per cent to close at 99,118.86 points. Also, market capitalisation shed N102 billion to close at N56.07 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).
Analysts at 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 switch their asset classes to less risky assets.”
Afrinvest Research said: “Investor sentiment, as measured by market breadth, weakened to 0.07x (previously 0.10x) as 23 stocks advanced, 17 declined, and 84 closed flat. Tomorrow, we expect the bearish sentiment to linger due to declining investor sentiment.”
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 kobo and 44 kobo respectively, while Oando followed with a gain of 9.75 per cent to close at N12.95 kobo.
Veritas Kapital Assurance declined by 8.47 per cent to close at 64 kobo, while R.T. Briscoe Nigeria advanced by 8.33 per cent to close at 52 kobo.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 9.8 per cent to close at N1.38 kobo while Jaiz Bank shed 9.65 per cent to close at N2.06 kobo. McNichols lost 9.09 per cent to close at N1, while Japaul Gold & Ventures depreciated by 4.78 per cent to close at N2.09 kobo.
Also, the total volume traded declined by 19.5 per cent to 349.59 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 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.
