Massive sell-off hit the nation’s stock market yesterday, as volatility worsened ahead of the 2019 polls causing investors’ wealth to depreciate further by N261 billion.
At close of trading Wednesday, the All Share Index (ASI), nose-dived by 699.35 absolute points or 2.33 per cent, falling below the 30,000-mark for the first time since May 2017, to close at 29,336.80 points.
Similarly, market capitalisation fell by N261 billion, closing at N10.940 trillion.
The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are; Dangote Cement, Guaranty Trust Bank, Eterna, Access Bank and Custodian Investment.
Analysts at Cordros Capital, said: “We reiterate our negative outlook for the equities market in the medium term amidst political concerns ahead of the 2019 elections. However, positive macro-economic fundamentals remain supportive of recovery in the long term.”
Analysts at Afrinvest Limited, said: “We believe that the lingering bearish sentiment in the local bourse will remain unabated as tensions in the political uncertainty remain heightened.”
Market breadth remained negative with 14 gainers against 19 losers. Julius Berger recorded the highest price gain of 10 per cent to close at N25.85 per share.
Unilever Nigeria followed with a gain of 9.63 per cent to close at N37, while United Capital rose by 6.87 per cent to close at N2.80 per share, respectively.
FCMB Group appreciated 6.25 cent to close at N1.70 kobo, while Fidelity Bank rose 5.56 per cent to close at N1.90 per share.
On the other hand, University Press led the losers’ chart by 10 per cent to close at N1.89 per share.
NEM Insurance followed with a loss of 9.91 per cent to close at N1.91, while Champion Breweries lost 9.88 per cent to close at N1.55 per share, correspondingly.
Eterna declined by 9.20 per cent to close at N3.95, while Neimeth International Pharmaceuticals was down 9.09 per cent to close at 70 kobo per share, respectively.
Investors traded a total share volume of 234.9 million valued at N2.25 billion in 3,806 deals. Diamond Bank traded 54.67 million shares valued at N103.94 million.
Guaranty Trust Bank followed with 27.68 million shares worth N865.7 million, while Zenith Bank traded 25.82 million shares valued at N526.34 million.
FBN Holdings traded 21.52 million shares valued at N152.1 million, while Transnational Corporation of Nigeria (Transcorp) transacted 15.48 million shares worth N17.95 million.