Stock market halts gains as investors lose N65 billion

 

FILES] Nigerian Exchange Limited (NGX). Photo/FACEBOOK/ ngxgroup

By Helen Oji

The bears resurfaced on the trading floor of the Nigerian Exchange Limited (NGX) yesterday, after six consecutive days of uninterrupted bullish streak as losses in Betaglas and BUA cement dragged capitalisation by N65 billion.

Specifically, at the reopening of transactions yesterday, the All Share Index (ASI) decreased by 117.89 absolute points, representing a dip of 0.25 per cent to close at 47,436.45 points. Similarly, the market capitalisation lost N65 billion to close at N25.837 trillion.

The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are; Beta Glass, BUA Cement, United Capital, SCOA Nigeria and Access Holdings.

United Capital Plc said the impact of the recent 100bps Monetary Policy Rate (MPR) hike may impact negatively on the local bourse, as investors are expected to book profits from the recent rally.

“We expect money market yields to continue to respond to the MPC’s persistent policy tightening, driving renewed interest from investors. In addition, technical signals (RSI & MACD) indicate the market is due a breather following the extended rally,” United Capital added.

Vetiva Dealings and Brokerage said: “Market breadth retreated to the negative region, as gainers were outnumbered, 15 to 17. While this was expected given the positive performance recorded across the board last week, we still anticipate slight cherry-picking action tomorrow.”

Meanwhile, market breadth closed negative, with 15 gainers versus 17 losers. Prestige Assurance recorded the highest price gain of 9.30 per cent to close at 47 kobo, per share. NEM Insurance followed with a gain of 9.22 per cent to close at N4.50, while Courteville Business Solutions rose 8.70 per cent to close at 50 kobo, per share.

Thomas Wyatt Nigeria went up by 8.33 per cent to close at 39 kobo, while unity Bank appreciated by 7.55 per cent to close at 57 kobo, per share.

On the other hand, Beta Glass led the losers’ chart by 9.90 per cent to close at N39.60, per share, per share. McNichols Plc followed with a decline of 9.68 per cent each to close at 56 kobo, while SCOA Nigeria lost 9.40 per cent to close at N1.06, per share.

Jaiz Bank lost 6.82 per cent to close at 82 kobos, while Wapic Insurance shed 5.71 per cent to close at 33 kobo, per share.

The total volume traded rose by 182.15 per cent to 279.283 million units, valued at N1.563 billion, and exchanged in 3,781 deals. Transactions in the shares of Regency Alliance Insurance topped the activity chart with 97.635 million shares valued at N23.434 million.

Jaiz Bank followed with 65.421 million shares worth N53.673 million, while United Bank for Africa (UBA) traded 22.926 million shares valued at N167.354 million.

Fidelity Bank traded 12.420 million shares valued at N50.930 million, while FBN Holdings transacted 10.292 million shares worth N112.343 million.