Local Equity Market Remains in Negative Territory

By Dipo Olowookere

It was another session in the negative territory for the Nigerian Exchange (NGX) Limited on Wednesday amid persistent selling pressure, particularly in the financial services sector.

Business Post reports that the All-Share Index (ASI) was marginally down by 1.74 points to 102,106.31 points from 102,108.05 points, as the market capitalisation went down by N1 billion to N55.871 trillion from N55.872 trillion.

During the midweek session, only the consumer goods sector ended on a positive note after it went up by 1.32 per cent, while the energy counter closed flat.

However, the insurance sector depreciated by 1.49 per cent, the banking space declined by 1.45 per cent, and the industrial goods index weakened by 0.10 per cent.

Investor sentiment remained weak as the exchange ended with 35 price losers and 19 price gainers, representing a negative market breadth index.

The heaviest price loser was AIICO Insurance, which dropped 9.92 per cent to N1.18, Cadbury Nigeria fell by 9.50 per cent to N21.90, Guinea Insurance declined by 8.93 per cent to 51 Kobo, Tantalizers receded by 8.70 per cent to 42 Kobo, and Honeywell Flour lost 6.96 per cent to N4.01.

On the flip side, Meyer gained 10.00 per cent to sell for N5.72, Tripple Gee appreciated by 9.84 per cent to N4.13, Juli expanded by 9.09 per cent to 84 Kobo, Cornerstone Insurance grew by 8.78 per cent to N2.23, and Africa Prudential soared by 8.70 per cent to N8.75.

This newspaper reports that investors transacted 341.9 million shares valued at N6.4 billion in 9,665 deals compared with the 494.2 million shares worth N7.6 billion traded in 11,761 deals on Tuesday, indicating a decline in the trading volume, value, and the number of deals by 30.81 per cent, 15.79 per cent, and 17.82 per cent, respectively.

Transcorp closed the day as the busiest stock after selling 39.9 million units worth N548.9 million, FBN Holdings exchanged 33.6 million units valued at N840.6 million, GTCO traded 26.0 million units worth N1.0 billion, UBA sold 24.0 million units for N598.2 million, and Fidelity Bank transacted 18.3 million units worth N211.4 million.