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NGX reacts bearishly to strike action, as market declines by 0.13%  

Nigerian equities

The Nigerian Exchange started June on a bearish tone, as investors’ sentiments were quite cautionary considering the nationwide strike.

The All-Share Index closed at 99,118.86 points, reflecting a 0.13% decline from the previous 99,300.38 points.  

Equities lost N100 billion as the market capitalization declined to N56.07 trillion, from last Friday’s N56.172 trillion.  

There was a marginal 5% decrease in the number of deals that occurred in the market, as 8,082 deals occurred today, resulting in a turnover volume of 349.590 million shares, against 433.998 million shares from the previous trading session.  

The market breadth was slightly positive as 22 stocks gained, against 16 that recorded losses. The bearish performance in the market was majorly driven by banking stocks such as FBN Holdings, which lost 4.69% and UBA, which lost 1.35%, as well as Seplat which lost 1.3%.  

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Investors also reacted to the news of the license revocation of Heritage Bank by the CBN. Though not listed on the NGX, Heritage Bank’s news had a boomerang effect on the share price value of smaller banking stocks, as Unity Bank lost 9.80% and Jaiz Bank lost 9.65%.  

Market Highlights  

SWOOTs and FUGAZ Update  

There was relatively no change for stocks worth over one trillion, except Seplat Energy which declined by 1.3%. Other members of the SWOOT category, Airtel Africa, BUA Cement, BUA Foods, Dangote Cement, Geregu Power, GTCO, MTN Nigeria, Transcorp Power, and Zenith Bank posted no price changes.  

For top tier banking stocks, there was bearish sentiment as FBNH, UBA, and Access Holdings lost 4.69%, 1.35% and 0.29% respectively. GTCO and Zenith Bank posted no changes during the day.  

 

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