Banking Equities Crash NGX Index to 51,778.08 points
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited suffered one of its heaviest losses in recent times on Friday as it depreciated by 1.21 per cent as banking equities struggled to get patronage.
Yesterday, holders of stocks in the banking sector, especially those desperate to liquidate their holdings, lowered their prices to attract buyers but this strategy did not work as investors remain cautious of the macroeconomic environment and are limiting their exposure to the equity market.
The absence of a positive trigger weakened the All Share Index (ASI) by 633.01 points during the session to 51,778.08 points to 52,411.09 points and depleted the market capitalisation by N341 billion to N27.914 trillion from N28.255 trillion.
Business Post reports that the loss was across the main sectors of the exchange, with the banking counter the most hit as it fell by 2.31 per cent, followed by the consumer goods index, which dropped 0.64 per cent. The energy space lost 0.58 per cent, the insurance index went down by 0.24 per cent, while the industrial goods landscape declined by 0.01 per cent.
Only 10 equities gained points on the last trading day of the week as 24 stocks shed weight, with McNichols as the worst hit after its value went down by 9.76 per cent to N1.85.
Ardova lost 9.70 per cent to settle at N13.50, Livestock Feeds depreciated by 9.52 per cent to N1.33, International Breweries shed 9.42 per cent to sell for N6.25, while Courteville retreated by 9.26 per cent to 49 kobo.
Conversely, Ellah Lakes topped the gainers’ log with a price appreciation of 8.40 per cent to quote at N4.00, UAC Nigeria chalked up 6.48 per cent to trade at N11.50, Livingtrust Mortgage Bank appreciated by 5.26 per cent to N1.20, Mutual Benefits Assurance rose by 4.17 per cent to 25 kobo, while Fidelity Bank added 3.37 per cent to its value to sell for N3.37.
Jaiz Bank ended the session as the most traded stock with 40.7 million units sold for N37.2 million. UBA exchanged 35.7 million units for N269.4 million, Zenith Bank traded 33.2 million units worth N719.0 million, GTCO transacted 16.8 million units valued at N359.7 million, while Transcorp traded 10.9 million units valued at N14.0 million.
At the close of business, investors bought and sold 241.2 million shares worth N3.7 billion in 5,043 deals compared with the 211.6 million shares worth N2.4 billion transacted in 4,750 deals a day earlier, indicating an increase in the trading volume, value and number of deals by 13.98 per cent, 54.96 per cent and 6.17 per cent respectively.