Economy

Shares maintain free fall, market capitalization sheds N68bn

NSE: Indices rise further by 0.66%
Written by Maritime First

…As IMF Boss, Christine Lagarde resigns***

Activities on the Nigerian Stock Exchange (NSE) continued its worry some slide on Tuesday with the market indices extending their loss by 0.49 per cent, with market capitalization shedding off N68 billion, to close at N13.744 trillion in contrast to the N13.812 trillion achieved on Monday.

The All-Share Index, which opened at 28,341.03, shed 140.15 points or 0.49 per cent to close at 28,200.88 due to negative sentiment.

Thus, the month-to-date and year-to-date losses worsened to 3.29 per cent and 10.28 per cent, respectively.

The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which were Okomu Oil, Chemical and Allied Products (CAP), Forte Oil, Conoil and Flour Mills of Nigeria.

Analysts at Afrinvest Limited expected the negative performance to persist throughout the week as sell pressure dominated activities.

Cordros Capital Limited said its outlook for equities in the short to medium term remained conservative in the absence of catalysts to drive positive market returns.

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Market breadth remained negative with 10 gainers versus 32 losers.

Red Star Express recorded the highest price gain of 9.81 per cent  to close at N5.71 per share.

Lasaco Assurance followed with a gain 9.68 per cent to close at 34k, while NEM Insurance appreciated by 4.09 per cent to close at N2.29 per share.

Nestle Nigeria went up by 1.79 per cent to close at N1,250, while Guaranty Trust Bank appreciated by 1.72 per cent to close at N29.50 per share.

Conversely, CAP and Cement Company of Northern Nigeria (CCNN) led the price losers’ chart by 10 per cent each to close at N24.75 and N13.05 per share, respectively.

Okomu Oil followed with a decline of 9.93 per cent to close at N55.80 per share.

Forte Oil lost 9.90 per cent to close at N18.65, while Flour Mills of Nigeria shed 9.88 per cent to close at N14.60 per share.

The volume of shares traded rose by 23.95 per cent with 217.13 million shares worth N1.8 billion traded in 3,595 deals.

This was against the 175.17 million shares valued at N2.14 billion transacted in 3,111 deals on Monday.

Transactions in the shares of FBN Holdings topped the activity chart with 46.76 million shares valued at N266.24 million.

Courteville Business Solutions followed with 46.74 million shares worth N9.46 million, while UBA traded 24.17 million shares valued at N136.49 million.

Transcorp traded 12.40 million shares valued at N12.48 million, while Zenith Bank transacted 10.97 million shares worth N204.04 million.

In another development, the Managing Director, International Monetary Fund (IMF), Ms Christine Lagarde has resigned.

The IMF Executive Board indicated this in a statement issued on Tuesday in Washington D.C., adding that it has accepted Lagarde’s resignation with effect from Sept. 12.

“We would like to express our greatest appreciation for all that Lagarde has done for the institution.

“Her legacy of achievements has made a lasting imprint on the fund.

“Under her guidance, the fund successfully helped its members navigate a complex and unprecedented set of challenges, including the impact of the global financial crisis and its aftershocks.”

The board added that the fund had excelled in serving its entire membership over the course of her tenure with cutting-edge policy advice supported by ground-breaking analytical work on a range of macro-critical issues.

It also said that her stewardship had been exceptional, adding that it was grateful for her innovative and visionary leadership.

“With this decision by Lagarde, the IMF executive board will initiate promptly the process of selecting the next Managing Director and will communicate in a timely fashion.

“The executive board has the utmost confidence in Mr David Lipton, who remains Acting Managing Director of the fund in the interim period.”

Lagarde’s resignation comes ahead of a decision on her nomination to become head of the European Central Bank (ECB).

The 63-year-old former French cabinet minister, who began her career as a lawyer, has been head of the IMF since 2011.

 

 

 

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Maritime First