Emmanuel Ochayi
Equities at the Nigerian Exchange Limited (NGX) kicked off yesterday with a twist as market capitalization dipped by N22 billion, with a slump in the shares of VFG Group and 20 other stocks creating waves of uncertainty among investors.
The All-Share Index (ASI) mirrored the downturn, concluding the trading day with a drop of 38.49 points, marking a 0.06 percent decrease to rest at 66,876.92 points. Market capitalization also suffered a blow, nosediving to N36.742 trillion.
The driving force behind this slump was the price depreciation of several large and medium capitalization stocks, including VFD Group, Dangote Sugar Refinery, Guaranty Trust Holding Company (GTCO), University Press, Oando, First City Monument Bank, and FTN Cocoa.
United Capital Plc’s analysts expressed their perspective, stating, “We anticipate mixed investor sentiments to continue in the equities market. We expect more improvements in positive sentiments as investors position themselves ahead of the nine-month 2023 earnings season. The weak earnings expectation will continue to cast a shadow on the overall market sentiment.”
Despite the bearish tone, the market breadth displayed a positive note, with 23 stocks seeing appreciation while 21 experienced depreciation.
On the winning side, Thomas Wyatt Nigeria emerged as the highest price gainer, surging by 9.92 percent to close at N3.99 kobo. Academy Press followed suit, posting a gain of 9.71 percent to close at N1.92, while Ikeja Hotels rose by 9.52 percent to close at N3.45 per share. Chams saw a rise of 7.38 percent to close at N1.60, while Tantalizers appreciated by 6.90 percent to close at 31 kobo per share. Regency Insurance also saw gains of 5.88 percent to close at 36 kobo, and Guinea Insurance gained 4.35 percent to close at 24 kobo.
Champion Breweries increased by 4.29 percent to close at N3.65 kobo, Cornerstone added 4.23 percent to close at N1.48 kobo, May & Baker improved by 2.88 percent to close at N5, UACN added 2.73 percent to close at N11.30 kobo, and Mansard appreciated by 2.66 percent to close at N4.24 kobo.
However, on the flip side, VFD Group led the pack of losers with a decline of 9.99 percent, closing at N242.40 kobo. McNichols followed with a loss of 9.68 percent, closing at 56 kobo, while University Press shed 9.32 percent to close at N2.14 kobo. Consolidated Hallmark Insurance also faced a decline of 5.22 percent to close at N1.09 kobo, and Omatek Ventures depreciated by 4.44 percent to close at 43 kobo.
Universal Insurance shed 4.17 percent to close at 23 kobo, Dangote Sugar Refinery depreciated by 3.94 percent to close at N61, and Veritas Kapital lost 3.85 percent to close at 25 kobo. FTN Cocoa also shed 3.57 percent to close at N1.62 kobo, JapaulGold dropped 2.15 percent to close at 91 kobo, and Unity Bank faced a 2.11 percent drop, closing at 93 kobo.
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The total volume of trade surged by 52.8 percent, reaching 314.619 million units valued at N4.388 billion, with 6,133 deals transacted. United Bank for Africa (UBA) took the lead in trading activity, with 47.151 million shares worth N900.696 million, followed by Access Holdings with 40.348 million shares valued at N666.866 million. FCMB Group traded 29.054 million shares valued at N173.553 million, GTCO traded 27.304 million shares worth N959.246 million, and Transnational Corporation (Transcorp) saw 16.436 million shares change hands, valued at N102.04 million.
