Dangote Cement, Stanbic IBTC Biggest Losers As Stock Market Crashes 2.26%
The Nigerian stock market recorded its biggest fall in recent years after the Exchange’s All-Share Index (ASI) dropped 2.26 per cent on Tuesday which a market analyst described as “alarming”.
The ASI, which opened trading at 49,351.06, closed 50,489.73, depreciating by 1,138.67 basis points or 2.26 per cent during the day’s trading.
The market capitalisation of listed equities also declined by N614.16 billion, a 2.26 per cent loss to settle at N26.62 trillion from the previous N27.23 trillion.
The steep fall of the market was triggered by drop in the value of large and medium stocks which included Dangote Cement, Stanbic IBTC, Cornerstone Insurance, Sovereign Trust Insurance and Japaul Gold.
A of total 137.19 million shares worth N1.58 billion were traded in 3,823 deals compared to 207.19 million shares valued at N2.12 billion traded in 4,234 deals on Monday.
Sixteen stocks lost prices, while 12 appreciated.
The price gainers’ table was led in percentage terms by NEM Insurance which gained 10 per cent to close at N3 74 kobo per share.
Prestige Assurance rose by 10 per cent to settle at N0.44 kobo per share, while Ellah Lakes jumped 9.78 per cent to close at N3.93 kobo per share.
Multiverse and Ikeja Hotel appreciated by 9.57 per cent and 9.28 per cent respectively to settle at N2. 06 kobo and N1.06 kobo per share.
Conversely, the losers’ chart was led in percentage terms by another insurer, Cornerstone Insurance, which dipped by 9.33 per cent to close at N0.68 kobo per share.
Dangote Cement, one of the most capitalized stocks, fell 9.06 per cent to settle at N241 per share, while Japaul Gold lost 8.11 per cent to settle at N0.34 kobo per share.
Sovereign Trust Insurance and Stanbic IBTC Holdings shed 7.41 per cent and 6.45 per cent respectively to settle at N0.25 kobo.
Japaul Gold was the most active stock in volume terms, trading 23.18 million shares valued at N8.95 million, while Guaranty Trust Holding Company( GTCO) was the most valuable stock, transacting 7.8 million units of shares worth N160.96 million.
Commenting on the development, Analyst at Highcap Securities Limited, David Adonri, described the sharp decline of the market as alarming.
He said the development might be investors’ reaction to current poor poor economic outlook in the country.
“It’s alarming for the market to shed that kind of value in a single day trade. I am a little bit worried. You know a number of high profile personalities have raised alarm over the impending threat of collapse of the economy.
“I just hope investors are not reacting to that alarm raised by former Governor of the Central Bank of Nigeria (CBN), Sanusi Lamido Sanusi, and also the alarm raised by The Nigeria Employers’ Consultative Association (NECA) that the economy is at the verge of collapse,” he said.
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