Stock Market Halts Winning Streak, Loses N162bn

The domestic stock market, yesterday, commenced trading for the month of March on decline as capitalisation dropped by N162 billion, ending its five-day winning streak.

The All Share Index (ASI) fell by 297.65 absolute points, representing a decrease of 0.53 per cent to close at 55,508.61 points. Accordingly, investors lost N162 billion in value as market capitalisation declined to  N30.239 trillion.

The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are; Airtel Africa, Ecobank Transnational Incorporated (ETI), United Capital, Lafarge Africa and UAC of Nigeria (UACN).

Analysts noted that the market has rallied significantly in consecutive months, raising fears of an over-extended market, saying, “we expect sustained bullish sentiments as we anticipate downbeat money market yields till Q2, 2023. Technical indicators point to a more significant downside potential for equities. 

“We consider buying equities a ‘riskier’ rather than a ‘wrong’ strategy while favouring reducing portfolio exposures as the ideal approach. Equity stakeholders can look to book profits off stocks that have crossed the overbought region, as the RSI indicates.”

However, market breadth closed positive  as 30 stocks gained relative to 12 decliners. Veritas Kapital Assurance recorded the highest price gain of 10 per cent to close at 22 kobo, per share. Ardova Plc (AP) followed with a gain 9.76 per cent to close at N18.55, while Wema Bank gained 8.75 per cent to close at N4.35, per share.

The Initiates Plc (TIP) appreciated by 8.33 per cent to close at 52 kobo, while Geregu Power gained 8.20 per cent to close at N298.10, per share. On the other hand, John Holt led the losers’ chart by 9.66 per cent to close at N1.59, per share. ETI followed with a decline of 7.69 per cent to close at N12.00, while Airtel Africa declined by 5.25 per cent to close at N1,535.00, per share.

United Capital shed 3.91 per cent to close at N14.75, while FTN Cocoa processors shed 3.45 per cent to close at 28 kobo, per share.

Meanwhile the total volume of trades rose by 138.57 per cent to 565.823 million units, valued at N6.579 billion, and exchanged in 4,340 deals. Transactions in the shares of Capital Hotel topped the activity chart with 333.236 million shares valued at N2.333 billion. 

Transnational Corporation followed with 47.893 million shares worth N67.002 million, while Guaranty Trust Holding Company (GTCO) traded 46.626 million shares valued at N1.258 billion.

Oando traded 19.977 million shares valued at N102.326 million, while Access Holdings transacted 19.417 million shares worth N186.210 million.