First deficit recorded at Stock market in 2024, as investors lose N639bn

The loss of N639 billion to investors by blue chip companies which occured yesterday at the stock market retarded the boost earlier recorded at the capital market

The stock market has been on a roller coaster since the beginning of the year as investors position ahead of the year end financial results and dividends declaration by the quoted companies.

This rally, which lasted for six days until yesterday, saw investors rake in N3.941 trillion.

However, the trend was broken yesterday after the benchmark equities indicator – All Share Index (ASI), fell to 82,024.38 points from 83,191.84 points, indicating a 1.40 percent decline.

Similarly, the market capitalisation of the listed equities depreciated to N44.885 trillion from N45.524 trillion on Tuesday, also representing a 1.40 percent decline.

Further analysis of the day’s trading showed that the losses recorded yesterday was driven by selloff in MTN Communication Nigeria Plc, which fell by 4.41 percent; Zenith Bank Plc (-9.93%) and Guaranty Trust Company (GTCo) Plc (-8.71%).

Consequently, the year-to-date (YTD) return decreased to +9.70 percent.

Sectoral analysis showed that market sentiment was mixed as two of the sectors recorded decline while three appreciated

Specifically, the insurance and oil and gas sectors fell by 61 percent and 0.4 percent respectively, while the banking, consumer goods and the industrial goods sectors advanced by 8 percent, 2.5 percent and 1.4 percent respectively.

Analysing by sectors, the Banking (+8.0%), Insurance (-6.1%) and Oil & Gas (-0.4%) indices printed losses while the Consumer Goods (+2.5%) and Industrial Goods (+1.4%) indices advanced.

Analysis of the market activities showed trade turnover settled higher relative to the previous session, with the value of transactions up by 2.82 percent. A total of 1.64 billio n shares valued a N25.38 billion were exchanged in 20,223 deals.

On the price movement chart, Cornerstone Insurance recorded 10 percent price decline to lead 49 other losers, while Cadbury Nigeria Plc with 9.92 percent appreciation led 10 others on the gainers table.

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