Investors lose N94bn on Nigerian Stock Exchange (NSE), as market capitalisation drops to N12trn mark

NSE: Market grows N15bn as indices open week with 0.12% growth
Written by Maritime First

…Nigerian Stock Exchange (NSE) suspends trading in shares of 11 companies over delayed filing of accounts***

Transactions on the Nigerian Stock Exchange (NSE) has continued its bearish trend for the second trading day of the month with investors’ net worth dropping by N94 billion.

Consequently, the market capitalisation dropped to N12 trillion mark, having lost N94 billion to close at N12.956 trillion compared with N13.050 trillion recorded on Monday.

In the same vein, the All-Share Index which opened at 29,614.61 shed 219.47 points or 0.74 per cent to close at 29,395.14 due to profit taking.

The Year-to-Date losses increased to 6.48 per cent.

The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are, Nestle Nigeria, International Breweries, Dangote Cement, Dangote Sugar Refinery and Guaranty Trust Bank.

“We expect a mixed performance this week as investors take caution in selecting stocks ahead of H1,2019 earnings releases, ” analysts at Afrinvest Limited stated.

Analysts at Cordros Capital Limited also noted: “Our outlook for equities in the short to medium term remains conservative, amidst absence of a positive catalyst.”

An analysis of the price movement table shows that Nestle recorded the highest loss, shedding N45 to close at N1,345 per share.

International Breweries trailed with a loss of N1.25 to close at N17.05, while Dangote Cement dipped N1.10 to close at N179.90 per share.

Dangote Sugar lost 65k to close at N10.70, while Guaranty Trust Bank dropped by 60k to close at N30 per share.

Conversely, Cement Company of Northern Nigeria led the gainers’ table, appreciating by N1.05 to close at N14 per share.

Nigerian Breweries followed with a gain of 50k to close at N60.50, while Ecobank Transnational Incorporated garnered 30k to close at N10.30 per share.

Cadbury added 20k to close at N10.70, while Lafarge Africa gained 20k to close at N12.50 per share.

Guaranty Trust Bank was investors delight emerging as the most traded equity, accounting for 24.43 million shares worth N742.15 million.

United Bank for Africa followed with an account of 23.35 million shares valued at N144.92 million, while Lafarge Africa sold a total of 22.73 million shares worth N284.16 million.

Zenith Bank Plc traded 22.34 million shares valued at N436.88 million, while FBN Holdings sold a total of 18.52 million shares worth N120.30 million.

In all, a total of 200.69 million shares valued at N2.89 billion were traded by investors in 4,856 deals.

This was in contrast with a turnover of 107.44 million shares worth N1.14 billion transacted in 3,067 deals on Monday.

In the meantime, the Nigerian Stock Exchange (NSE) on Tuesday suspended trading in the shares of 11 companies over delayed filing of accounts.

Mr Godstime Iwenekhai, NSE Head, Listings Regulation Department stated this in a statement issued in Lagos, with Iwenekhai saying that the affected companies were: Conoil, FTN Cocoa Processors, Goldlink Insurance, Lasaco Assurance, Niger Insurance and R.T. Briscoe.

READ MORE…Nigerian Stock Exchange (NSE) market indices open July with 1.18% loss

Others were: Resort Savings & Loans, Royal Exchange, Standard Alliance Insurance and Universal Insurance.

He said that the suspension was in accordance with Rule 3, 1, Rules for Filing of Accounts and treatment of default filing, and Rulebook of The Exchange.

“If an Issuer fails to file the relevant accounts by the expiration of the Cure Period, The Exchange will: (a) Send to the Issuer a “Second Filing Deficiency Notification” within two business days after the end of the Cure Period.

“The exchange will after the Cure suspend trading in the Issuer’s securities; and notify the Securities and Exchange Commission (SEC) and the market within 24 hours of the suspension.

“In accordance with the rules set forth above, the suspension of the above-listed companies will only be lifted upon the submission of the relevant accounts and provided The Exchange is satisfied that the accounts comply with all applicable rules of The Exchange,” Iwenekhai stated.

About the author

Maritime First