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Business News of Wednesday, 10 August 2022

Source: guardian.ng

Sell-offs in Dangote cement, others drag indices further by N615 billion

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Following sell-offs in Dangote Cement and 15 stocks, the Nigerian Exchange Limited (NGX) extended losses to a second consecutive session yesterday, dragging market capitalisation further by N615 billion.

The All Share Index (ASI) decreased by 1,139.02 absolute points, representing a dip of 2.26 per cent to close at 49,350.71 points. Similarly, the market capitalisation lost N615 billion to close at N26.618 trillion.

The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are; Dangote Cement, MTN Nigeria Communications (MTNN), Stanbic IBTC Holdings, Champion Breweries and International Breweries.

United Capital Plc said: “We maintain that the local bourse will remain broadly bearish as higher interest rates, depressed exchange rate and political camaraderie weigh on investor sentiments in the medium term.”

Market breadth, which is measured by market sentiment, was negative, as 12 stocks gained relative to 16 losers. NEM Insurance and Prestige Assurance recorded the highest price gain of 10 per cent each to close at N3.74 and 44 kobo respectively, while Ellah Lakes followed with a gain 9.78 per cent to close at N3.93 kobo.

Multiverse Mining & Exploration went up by 9.57 per cent to close at N2.06 kobo while Ikeja Hotel appreciated by 9.28 per cent to close at N1.06 kobo. RT Briscoe shed 8.33 per cent to close at 39 kobo while Chams appreciated by eight per cent to close at 27 kobo.

Ecobank TransNational Incorporated garnered 7.07 per cent to close at N10.60 kobo. TransNational Corporation added 3.70 per cent to close at N1.12 kobo. FTN Cocoa gained 3.23 per cent to close at 32 kobo. Lasaco added 1.02 per cent to close at 99 kobo while GTCO also appreciated by 24 per cent to close at N20.55 kobo.

On the other hand, Cornerstone Insurance led the losers’ chart by 9.33 per cent to close at 68 kobo, per share. Dangote Cement followed with a decline of 9.06 per cent to close at N241.00, while Japaul Gold and Ventures went down by 8.11 per cent to close at 34 kobo.

Sovereign Trust Insurance lost 7.41 per cent to close at 25 kobo, while Stanbic IBTC Holdings shed 6.45 per cent to close at N29.00, per share. Champion lost 6.25 per cent to close at N3.75 kobo.

International Breweries depreciated by 4.76 per cent to close at N5. Honeywell dropped 4.75 per cent to close at N2.81 kobo. MTN Nigeria depreciated by 4.29 per cent to close at N201 kobo. CHI Plc also shed 3.33 per cent to close at 58 kobo.

Also, the total volume traded declined by 32.14 per cent to 140.610 million units, valued at N1.600 billion, and exchanged in 3,895 deals.

Transactions in the shares of Japaul Gold and Ventures topped the activity chart with 23.180 million shares valued at N8.951 million.

AIICO Insurance followed with 14.849 million shares worth N8.449 million, while Sterling Bank traded 14.302 million shares valued at N21.411 million.

Sovereign Trust Insurance traded 10.111 million shares valued at N2.579 million, while Guaranty Trust Holding Company (GTCO) transacted 7.850 million shares worth N160.969 million.