Naira depreciation: Equity market records N200bn loss in NGX

Trading activities on the floor of the Nigerian stock market declined on Tuesday, making investors lose N200 billion amid the recent Naira depreciation against the Dollar at the foreign exchange market.

Accordingly, the market capitalisation shed N200 billion or 0.35 per cent to close at N56.167 trillion, in contrast to N56.367 trillion recorded on Monday.

Also, the All-Share Index dropped by 0.35 per cent or 354 points to close at 99,311.54, compared to 99,665.05 posted in the previous session.

Consequently, the Year-To-Date (YTD) return fell to 32.82 per cent.

The market breadth closed negative, with 25 losers and 16 gainers.

Sell-offs in tier-one banks such as Zenith Bank, Guaranty Trust Holding Company (GTCO), Access Corporation, FBN Holdings, Wema Bank, as well as Royal Exchange and Africa Prudential, among others top decliners, positioned the market in the red.

On the losers’ table, Honeywell flour led by 35k to close at N3.19, FBN Holdings trailed by N2.40 to close at N21.90, while Oando Plc shed N1.10 to close at N10.10 per share.

FTN Cocoa depreciated by 14k to close at N1.35; Nestle Nigeria lost N80 to close at N820 per share.

Conversely, Sunu Assurances led the gainers’ table by 10k to close at N1.10, and Japaul Gold Group followed by 18k to close at N2.01 per share.

CAP Plc gained N2.25 to close at N26.25, Omatek added 7k to close at 83k, and Prestige Assurance rose by 5k to close at 60k per share.

Analysis of the market activities showed trade turnover settled higher relative to the previous session, with the value of transactions up by 47.95 per cent.

574.43 million shares valued at N7.84 billion were exchanged in 7,324 deals, as against 306.62 million shares valued at N5.30 billion exchanged in 8,298 deals.

Transnational Corporation led the activity table in volume and value, with 125.70 million shares traded at N1.89 billion.

UPDC Real Estate Investment Trust, followed by 12.12 million shares worth N605.59 million, United Bank of Africa (UBA) sold 55.49 million shares valued at N1.28 billion.

Access Corporation traded 51.47 million shares valued at N833.25 million, and Universal Insurance transacted 50.84 million shares worth N19.13 million.

Meanwhile, investors’ interest improved in the shares of FBN Holdings, as the Group sold 7.91 million shares valued at N175.69 million, compared to 2.11 million shares worth N49.52 million traded on Monday.

However, the stock price, which opened at N24.30, shed N2.40 to close at N21.90 per share.

The development comes amid moves by commercial banks to ramp up efforts towards meeting the recent minimum capital requirement benchmark by the Central Bank of Nigeria.