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Stock market opens 0.04% weaker



Opening the week and second quarter of the year, the Nigerian stock market’s performance indices on Monday closed at 0.04 per cent weaker, making investors to lose N22 billion.

Specifically, the Nigerian Exchange Ltd. (NGX) market capitalisation, which opened at N56.602 trillion, shed N22 billion or 0.04 per cent to close at N56.580 trillion.

The All-Share Index also dropped 0.04 per cent or 37 points to settle at 100,020.83 as against 100,057.49 recorded on Friday.

As a result, the Year-To-Date (YTD) return fell to 38.28 per cent.

Meanwhile, the market’s poor performance was primarily driven by selloffs in Zenith Bank, United Bank For Africa (UBA), Fidelity Bank, Transnational Corporation, Nigerian Breweries, International Breweries, among other declined equities.

Market breadth also closed negative with 28 losers and 20 gainers on the floor of the Exchange.

On the losers’ table, ETranzact led by 10 per cent to close at N4.50, Fidson Healthcare followed by 9.70 per cent to close at N13.50 per share.

Cornerstone Insurance lost 9.52 per cent to close at N1.90, LASACO Assurance declined by 9.41 per cent to close at N2.31 per share.

UPDC Real Estate Investment Trust also went down by 8.26 per cent to close at five Naira per share.

Conversely, Linkage Assurance led the gainers’ table by 10 per cent to close at N1.10, Africa Prudential trailed by 9.76 per cent to close at nine Naira per share.

Unity Bank gained 9.74 per cent to close at N1.69, Wapic Insurance rose by 8.96 per cent to close at 73k, while Sovereign Trust advanced by 8.89 per cent to close at 49k per share.

Also, market analysis indicated that trade turnover settled lower relative to the previous session with the value of transactions down by 62.44 per cent.

A total of 274.68 million shares valued at N3.71 billion were exchanged in 10,112 deals, compared to 509.71 million shares valued at N9.88 billion exchanged in 7,945 deals posted in the previous session.

United Capital led the activity chart in volume and value with 26.64 millions shares worth N737.25 billion, followed by Linkage Assurance with 23.91 million shares valued at N26.30 million.

AIICO Insurance sold 14.21 million shares worth N14.32 million, Computer Warehouse Group transacted 11.45 million shares worth N89.40 million, while Universal Insurance traded 11.12 million shares worth N4.04 million.

In its market prediction for the week, Analyst at Cowry Asset Management Ltd., anticipated that the new trading quarter would commence strongly, albeit with mixed sentiment from market investors.

They noted that the market would focus on the forthcoming earnings reporting season and interim dividends from the banking sector and a few other companies.

According to the analysts, the changing market structure on the NGX continues as bargain hunters take advantage of recent pullbacks and corrections to buy into value.

They added that this is amidst an ongoing portfolio repositioning ahead of the second quarter numbers, ushering in the second half of the year.

“Investors are advised to seize opportunities in stocks with strong fundamentals,” the analyst noted.

Rukayat Adeyemi

NEWSVERGE, published by The Verge Communications is an online community of international news portal and social advocates dedicated to bringing you commentaries, features, news reports from a Nigerian-African perspective. A unique organization, founded in the spirit of Article 19 of the Universal Declaration of Human Rights, comprising of ordinary people with an overriding commitment to seeking the truth and publishing it without fear or favour. The Verge Communications is fully registered with the Corporate Affairs Commission of the Federal Republic of Nigeria as a corporate organization.



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