… As FG commends NGX on capital market development***
Negative sentiments persisted on the nation’s bourse on Wednesday with the market capitalisation dropping further by N22 billion, amid sell pressure in Tier-1 banking stocks.
Consequently, the market capitalisation which opened at N19.725 trillion shed N22 billion or 0.11 per cent to close at N19.703 trillion.
Also, the All-Share Index dipped 42.61 points or 0.11 per cent to close at 37,804.46 from 37,847.07 recorded on Tuesday.
Thus, month-to-date and year-to-date losses inched higher at 1.7 per cent and 6.1 per cent, respectively.
The loss was driven by price depreciation in large and medium capitalised stocks amongst which are; Zenith Bank, Access Bank, e-Tranzact, University Press and Ecobank Transnational Incorporated.
Also read: NGX extends loss by N364bn
The market closed negative with 11 gainers in contrast with 23 losers.
Royal Exchange led the losers’ chart in percentage terms with 10 per cent to close at 63k per share.
Japaul Gold and Ventures followed with 9.80 per cent to close at 46k, while University Press lost 9.52 per cent to close at N1.52 per share.
Consolidated Hallmark Insurance dipped 9.38 per cent to close at 58k, while e-Tranzact International shed 8.44 per cent to close at N2.06 per share.
On the other hand, FTN Cocoa Processors dominated the gainers’ chart in percentage terms, gaining 10 per cent to close at 33k per share.
Ikeja Hotel followed with 9.89 per cent to close at N1, while Cornerstone Insurance improved by 9.80 per cent to close at 56k per share.
Linkage Assurance rose by 9.09 per cent to close at 60k, while Mutual Benefits Assurance gained 5.26 per cent to close at 40k per share.
In all, the total volume of transactions lost 4.5 per cent with an exchange to 208.36 million shares valued at N1.60 billion exchanged in 3,365 deals.
This was in contrast with a total of 218.27 million shares worth N2.73 billion achieved in 3,524 deals on Tuesday.
Transactions in the shares of Zenith Bank topped the activity chart with 33.68 million shares valued at N795.03 million, followed by e-Tranzact International with 20.950 million shares worth N43.158 million.
Fidelity Bank traded 13.680 million shares valued at N31.38 million.
Royal Exchange traded 13.12 million shares valued at N8.28 million, while Japaul Gold and Ventures transacted 13.002 million shares worth N6.13 million.
In the meantime, the Federal Government has commended the Nigerian Exchange (NGX) for its efforts aimed at deepening the Nigerian capital market.
The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, said this in a statement issued by Mr Tijjani Mohammad for Director, Information and Public Relations of the ministry on Wednesday.
Ahmed made the commendation when the management of the NGX, led by its Chief Executive Officer, Mr Timi Popoola, paid her a courtesy visit in her office.
She urged the management to leverage technology and innovations which could ease the processes of trading on the exchange.
Ahmed also called on them to ensure that ordinary citizens participated actively in the capital market.
She said the Federal Government had directed the Securities and Exchange Commission to organise a saving policy and programme that would encourage citizens to participate actively in the capital market as a means of unlocking the potential.
The minister also said the ministry was working on the Finance Bill 2021 and would address hindering investments such as Company Income Tax (CIT), among others.
Also, the Permanent Secretary, Aliyu Ahmed, urged Popoola and his team to scale up the operations of the NGX for the benefits of investors and the market.
Earlier, Popoola said the aim of the visit was to introduce the NGX’s new management to the minister and to also to appreciate the ministry for its support to the Nigerian capital market.
Popoola assured the minister of the exchange’s support in making Nigeria a destination for foreign investment.
He, however, called for a reduction in CIT, from 25 per cent to 20 per cent, among others, stressing that it would ultimately attract more taxes to government.
Popoola also assured of the exchange’s commitment to support the ministry’s fiscal policy and willingness to serve on the committee of the Finance Bill 2021.