As investors lose N222bn
By Nkiruka Nnorom
As the equities market continues to reel from the impact of the Coronavirus (COVID-19) pandemic, losses recorded in two industrial goods giants – Bua Cement Plc and Dangote Cement Plc – yesterday, pushed the market further down by 2.02 percent.
Though gains were recorded in three of the five major sectors, the gains were not enough to lift the market as the heavy losses of 7.2 percent in the industrial goods sector kept the local bourse in the red zone.
Consequently, the All Share Index (ASI) plummeted to 20,669.38 points from 21,094.62 points, representing 2.02 percent decline.
The development was fueled by 9.92 percent and 6.4 percent losses in the shares of Bua Cement Plc and Dangote Cement Plc respectively, the two most capitalised stocks on the Nigerian Stock Exchange (NSE).
Meanwhile, investors lost another N222 billion at the close of transactions yesterday as the market capitalisation of all listed equities fell to N10.772 trillion from N10.994 trillion on Friday.
Analysing by sector, the banking sector rose by 2.6 percent following price gains in 10 banking stocks led by Access Bank Plc, which appreciated by 9.92 percent during the day.
The insurance sector rose by 1.94 percent, while consumer goods sector was up, 0.6 percent.
However, the gained were capped by losses in industrial goods and oil & gas sectors, which slumped by 7.2 percent and 4.5 percent respectively.
Analysis of the price movement chart indicated that 21 stocks posted gains, while 13 stocks posted losses.
Given the downward trend, investment researchers at United Capital Plc, a Lagos-based investment banking firm posited that sentiment for stocks would remain broadly tepid this week with renewed interest anticipated on select blue chip stocks as discerning investors continue to take advantage of the current market valuation.