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Business News of Wednesday, 29 September 2021


Banking, insurance stock sell-off triggers N3bn loss

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Equity investors in the Nigerian Exchange Limited lost N2.78bn at the end of trading on Tuesday as the banking and insurance indices declined.

The NGX All-Share Index depreciated marginally by 0.01 per cent from 38,864.33 basis points to 38,858.99 basis points with the market capitalisation decreasing from N20.249tn to N20.246tn.

The volume of shares traded on the floor of the NGX jumped by 277.41 per cent from 139.45 million shares valued at N1.71bn in 3,539 deals to 526.30 million shares worth N3.04bn in 3,535 deals.

The NGX Banking and Insurance indices dropped by 0.30 per cent and 3.39 per cent respectively while the NGX Industrial, Oil & Gas and Consumer Goods Indices appreciated by 0.02 per cent, 0.04 per cent and 0.10 per cent each.

Measured by market breadth, market sentiment was flat as gainers and losers amounted to 16 companies each. Skyway Aviation Handling Company Plc led the gainers’ chart with a 9.88 per cent increase to close at N4.45 per share.

Wema Bank Plc rose by 5.13 per cent, ending the day at N0.82 per share. Flour Mills Plc, United Capital Plc and Jaiz Bank Plc were also top gainers on Tuesday at +5.13 per cent, +1.87 per cent and +1.75 per cent.

Atop the losers’ table was AXA Mansard Insurance Plc with a share price decline of 9.70 per cent, closing at N2.70 at the end of trading on the floor of the NGX.

Africa Prudential Insurance Plc lost 8.59 per cent of its share price, ending the day at N5.85. Other major losers were Regency Alliance Insurance (-6.82 per cent), Tripple Gee and Company Plc (-6.25 per cent), and Courtville Business Solutions Plc (-5.71 per cent).

“Investors on the Nigeria Bourse sustained the previous day’s negative sentiment as the market performance indicators (NGX-ASI and market capitalisation) dipped marginally by 0.01 per cent,” said analysts from Atlas Portfolios Limited.

“The decline was driven by the sell-off in the financial sector of the market.“The Nigerian equities market traded with mixed sentiments as losses in Zenith Bank Plc (-0.6 per cent) offset gains in Guaranty Trust Holding Company Plc (+0.4 per cent),” analysts from Cordros Capital stated.