The Nigerian Exchange Limited (NGX) experienced a massive loss on the first day of business following the Yuletide holidays on Wednesday, 29 December, 2021.
The losses were led by many highly capitalised stocks, especially BUA cement and MTNN, amounting to a market capitalisation decline of N238 billion.
The All-Share Index declined by 455.75 per cent, representing a decrease of 1.08 per cent, to close at 41,807.10 points. Similarly, the overall market capitalisation value lost N238 billion to close at N21.822 trillion.
The drivers of the loss were BUA Cement, MTN Nigeria Communications (MTNN), PZ Cussons Nigeria, May & Baker Nigeria and Ecobank Transnational Incorporated (ETI).
For this week’s trading, United Capital Plc stated “We note that portfolio managers typically conduct year-end rebalancing activities while attempts are made to close the year in a positive portfolio return.
“Thus, we anticipate some mild buying interest in the week. That said, we note that sellers would largely be booking profits from the prior week as well as for the year (in the case of short-term traders). Nevertheless, we expect the buying activities to outweigh sell pressures.”
As measured by market breadth, market sentiment was slightly positive as 17 stocks gained while 16 recorded price depreciation.
Precisely, BUA Cement led the losers’ chart with 10 per cent to close at N67.05 kobo, while May & Baker Nigeria followed with a decline of 9.98 per cent to close at N4.06 kobo. PZ Cussons lost 8.96 per cent to close at N6.10 kobo.
Jaiz Bank declined 8.06 per cent to close at 57 kobo while UPDC Real Estate Investment Trust shed 6.25 per cent to close at N3.75 kobo.
On the other hand, Union Bank of Nigeria (UBN) recorded the highest price gain of 9.91 per cent to close at N6.10 kobo. Royal Exchange followed with a gain of 9.09 per cent to close at 84 kobo. Sovereign Trust Insurance rose by 7.69 per cent to close at 28 kobo.
Livestock Feeds increased by 6.86 per cent to close at N2.18 kobo. Caverton Offshore Support Group also appreciated by 2.99 per cent to close at N1.72 kobo.
The total volume traded increased by 61.10 per cent to 180.182 million units, valued at N1.482 billion, and exchanged in 3,828 deals. Transactions in the shares of Jaiz Bank topped the activity chart with 17.652 million shares valued at N10.534 million.
Union Bank followed with 16.801 million shares worth N101.826 million, while UAC of Nigeria (UACN) traded 12.884 million shares valued at N123.517 million.
Transnational Corporation of Nigeria (Transcorp) traded 11.387 million shares valued at N11.254 million, while Sovereign Trust Insurance transacted 9.999 million shares worth N2.780 million.
