Equity Market Slumps By N138bn
The Nigerian equity market again ended on a negative note, declining by N138 billion or 0.75% on Monday.
The market’s All Share index (ASI) closed at 34,774 compared to 35,037 it finished on Friday when the Market Capitalisation dipped by N138 billion or 0.75% thereby recording N18,170 billion in contrast to the N18. 308 billion it closed on Friday.
The decline in the equity market is a result of losses by highly capitalized. Amongst which aret; Nigerian Breweries, Dangote Syfar, Zenith Bank, Wapco and Flourmills.
The dip in stocks on Monday was represented in the market turnover which saw 668,531,406 volume of shares traded at N7. 849 billion in 10,319 deals, as against 1,243 billion volume of shares worth N16 286 billion in 13,433 deals on Friday.
The biggest losers in transaction in percentage terms on Monday showed Dangote Sugar suffering a loss of 9.91% to close at N20 per share.
WAPCO Plc dipped by 8.71% to close at N22 per share, while
Nigerian Breweries shed 8.08% to close at N58 per share.
Flourmill recorded a loss of 6.34% to close at N28. 05 per share, while Zenith Bank depreciated by 4.24% to close at N26 per share.
Conversely, BCO GAS led they gainers’ chart in percentage terns appreciating by 9.92% to close at N5. 32 per share,.
Neimeth gained 8.99% to close at N2. 91 per share, while Ardova surged by 8.11% to close at N16 per share.
Also BUA Cement grew by 7.69% to close at N56 per share, while Airtel rose by 2.06% to close at N
500 per share.
Market analyst at the Highcap Securities Limited, David Adonri said the loss experienced by the market is normal, noting that it doesn’t call for apprehension.
“There is a market correction taking place, on a daily basis now the market continue to rally. Price appreciation continue and that over heated the markets.
” Last Friday the market started to cool down so that it can purge itself of the over valuation of the market.
That is why the correction is taking place so as to bring it to the level of proper and rational valuation of the market.
” In summary, the market became over valued and what is happening right now is that the market is returning to its normal value, which is the dynamic point of equilibrium. We are in a normal market situation. The market is acting to type, no need for apprehension, ” he added.
The activity of trading on Monday was led by Zenith Bank with
94,033 million shares worth N2. 509 billion. Closely followed by Transcorp with 75,481 million shares worth N82.990 billion.
FBN Holding followed with 65,223 million shares worth N499. 297 million.
UBA came next with 60,103 million shares worth N524,52 million, while Acess Bank sold 50,291 million shares valued at N449,474 million.
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