Following sell pressure in 62 stocks, the Nigerian Exchange Limited (NGX) halted six consecutive days of gains, closing in on a downturn yesterday, causing market capitalisation to shed N639 billion.

At the close of transactions yesterday, the All-Share Index (ASI) lost 1,167.46 points, representing a decline of 1.40 per cent to close at 82,024.38 points. Also, market capitalisation declined by N639 billion to close at N44.885 trillion.

The downturn was driven by price depreciation in large and medium capitalised stocks amongst which are; MTN Nigeria Communications (MTNN), Zenith Bank, Guaranty Trust Holding Company (GTCO), United Bank for Africa (UBA) and Nigerian Aviation Handling Company (NAHCO).

Analysts at Afrinvest said: “Investor sentiment as measured by market breadth faltered to -1.0x from 1.6x in the prior session as 13 stocks advanced while 62 declined. Tomorrow, we expect an extended bearish tilt driven by profit-taking activities.”

Vetiva Dealings and Brokerage said: “Despite today’s profit-taking activities, investors took positions at today’s low price levels and we expect another mixed trading session tomorrow.”

As measured by market breadth, market sentiment was negative, as 13 stocks gained relative to 62 losers. Cadbury Nigeria emerged as the highest price gainer of 9.92 per cent to close at N19.95 kobo. Veritas Kapital Assurance followed with a gain of 9.76 per cent to close at 45 kobo, while Linkage Assurance rose by 8.70 per cent to close at N1.50 kobo.

Transcorp Hotels increased by 7.24 per cent to close at N100.00, while Prestige Assurance added 6.00 per cent to close at 53 kobo.
On the other side, Chams Holding Company, Cornerstone Insurance, FTN Cocoa Processors, May & Baker, Caverton Offshore Support Group and Consolidated Hallmark Holdings led the losers’ chart with 10 per cent each to close at N2.16 kobo, N1.80 kobo, N1.98 kobo, N5.49 kobo, N2.07 kobo and N1.35 kobo.

UBA followed with a decline of 9.97 per cent to close at N29.35 kobo, while United Capital and Ikeja Hotels shed 9.95 per cent each to close at N24.90 kobo and N8.69 kobo respectively.

Meanwhile, the total volume traded rose by 16.42 per cent to 1.641 billion units, valued at N25.3778 billion, and exchanged in 20,223 deals.
Transactions in the shares of Transnational Corporations (Transcorp) led the activity with 177.639 million shares worth N1.542 billion. Access Holdings followed with an account of 116.649 million shares valued at N3.259 billion, while Sterling Financial Holdings Company traded 116.295 million shares valued at N774.996 million. Jaiz Bank traded 100.070 million shares worth N282.658 million, while AIICO Insurance traded 91.790 million shares worth N127.859 million.