Sell-off: Fidelity Bank, BUA Cement shares drop market capitalisation by N226bn

Equity market posts losses, market capitalisation down by 0.12%
Written by Maritime First

…DMO lists additional FGN savings bonds for subscription at N1,000 per unit***

The equity market started the week and the month on a weak note due to a sell-off in some largely capitalized, making capital capitalization drop by N226.45 billion.

The negative performance was driven by BUA Cement, Neimeith, Fidelity Bank, and International Breweries, among others.

Also read: Nigerian Breweries records N274.03bn revenue in 6 months

Consequently, the market capitalization closed at N26.936 trillion from the N27.163 recorded on Friday.

Also, the All-Share Index lost 0.83 per cent to close at 49,950.32 points compared to 49,667.14 recorded on Friday.

The year-to-date (YTD) return fell to 16.93 per cent.

Similarly, traded volume declined by 28 per cent with 176 million units traded and the value traded fell 19 per cent to N2.2 billion.

However, the market breadth was positive as 21 stocks gained and 14 declined.

Caverton Offshore Support Group and Courtville Business Solutions led the gainers’ chart in percentage terms by 10 per cent to close at N1.10  and 44k per share, respectively.

Champion Breweries followed with a gain of  9.59 per cent to close at N4, while Unity Bank rose by 9.30 per cent to close at 47k per share.

Livestock also went up by 8.70 per cent each to close at N1.25.

On the other hand, Bua Cement led the losers’ chart in percentage terms by 9.96 per cent each to close at N62.40  per share.

McNichols Consolidated shed 9.89 per cent to close at 82k per share.

Neimeth International Pharmaceuticals also lost 9.68 per cent to close at N1.40 per share, while International Breweries lost 6.54 per cent to close at N5 per share.

Meyer & Baker declined by 6.42 per cent to close at N3.35 per share.

Analysis of the market activities showed trade turnover settled lower relative to the previous session, with the value of transactions reducing by 19.21 per cent.

A total of 176.05 million units of shares are valued at N2.27 billion.

Transactions in the shares of Guaranty Trust Holding Company (GTCO) topped the volume chart with 21.37 million shares valued at N426.8 million.

Zenith Bank followed with 20.452 million shares worth N429.28 million, while AccessCorp traded 16.79 million shares valued at N149.67 million.

First Bank of Nigeria (FBNH)  traded 14.31 million shares valued at N153.13 million, while United Bank for Africa transacted 14.26 million shares worth N100.53 million.

In another development, the Debt Management Office (DMO) has announced two additional Federal Government of Nigeria (FGN) savings bonds for offer for the month of August, at N1,000 per unit.

It started on Monday in Abuja that the first offer is a two-year savings bond due on Aug. 10, 2024, at an interest rate of 9.41 per cent per annum.

The second is a three-year savings bond due on Aug. 10, 2025, at an interest rate of 10.41 per cent per annum.

The DMO added said that the bonds are subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, and subject to a maximum subscription of N50 million.

It stated also that the offer opens in Aug. 1 and closes on Aug. 5, adding that coupon payments would begin on Nov. 10.

“Interest is payable quarterly while bullet repayment (the principal sum) will be made on the maturity date.

“The FGN bonds qualify as securities in which trustees can invest under the Trustee Investment Act.

“They qualify as government securities within the meaning of Company Income Tax Act and Personal Income Tax Act for tax exemption for Pension Funds, among other investors.

“They are listed on The Nigerian Stock Exchange and qualify as liquid assets for liquidity ratio calculation for banks,’’ the DMO stated.

It added that the bonds are backed by the full faith and credit of the Federal Government and charged upon the general assets of the country.

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Maritime First