Equities Market Opens June Bearish, Loses N102bn

The Nigerian equities market yesterday commenced trading for the month of June on a bearish note as losses in FBN Holdings (FBNH) Plc and 16 others dragged the overall capitalisation lower by N102 billion.

This is as the Nigerian unions began an indefinite strike, closing schools and public offices, impacting airports and shutting down the national power grid after talks with the government failed to agree a new minimum wage.

The All-Share Index (ASI) lost 111.52 points, representing a loss of 0.11 per cent to close at 99,118.86 points. Also, market capitalisation shed N102 billion to close at N56.070 trillion.

The downturn was driven by price depreciation in large and medium capitalised stocks amongst which are; FBNH, Lafarge Africa, eTranzact International, Nigerian Breweries and Transnational Corporation (Transcorp).

After posting a 6.1% loss in April 2024, the NGX bounced back marginally in May, posting a 1.09% gain, as the All-Share Index closed at 99,300.38 points.  

During the month, equities gained N619 billion as the market capitalization closed at N56.172 trillion, with banking stocks majorly driving the gain in the market.

Despite the positive performance in the market during the month, the market breadth was slightly bearish, as 55 stocks posted losses during the month, in contrast with 45 that posted gains.  

Gainers during the month cut across the different sectors, from construction to consumer goods, and financial services

This week, United Capital Plc said “we expect the mixed sentiments amongst investors to persist in the local equities market. On one hand, we expect pockets of buy-interests in the market as market participants take positions in fundamentally sound stock given their low pricings.

“Nevertheless, we still anticipate that the high returns in the fixed-income market will continue to negatively impact the equities market as investors switch their asset classes to less risky assets.”

However, investor sentiment, as measured by market breadth, closed positive as 23 stocks advanced, while 17 declined. Cornerstone Insurance and Deap Capital Management and Trust emerged the highest price gainer of 10 per cent each to close at N2.09 and 44 kobo respectively, while Oando followed with a gain of 9.75 per cent to close at N12.95, per share.

Veritas Kapital Assurance declined by 8.47 per cent to close at 64 kobo, while R.T. Briscoe Nigeria advanced by 8.33 per cent to close at 52 kobo, per share.

On the other side, eTranzact International led others on the losers’ chart with 9.82 per cent to close at N5.05, per share. Unity Bank followed with a decline of 9.80 per cent to close at N1.38, while Jaiz Bank shed 9.65 per cent to close at N2.06, per share.

McNichols lost 9.09 per cent to close at N1.00, while Japaul Gold & Ventures depreciated by 4.78 per cent to close at N2.09, per share.

Also, the total volume traded declined by 19.5 per cent to 349.590 million units, valued at N5.237 billion, and exchanged in 8,082 deals. Transactions in the shares of Veritas Kapital Assurance led the activity with 57.951 million shares worth N35.944 million. Guaranty Trust Holding Company (GTCO) followed with an account of 47.634 million shares valued at N1.888 billion, while Access Holdings traded 46.322 million shares valued at N796.316 million.

AIICO Insurance traded 30.706 million shares worth N30.796 million, while Regency Alliance Insurance traded 14.555 million shares worth N5.636 million.