The stock market of the Nigerian Exchange Limited (NGX) yesterday extended losses for the second consecutive session, bringing the overall market capitalisation down by N615 billion to drop below N26 trillion.
Specifically, the market capitalisation lost N615 billion to close at N26.618 trillion from N27.233 trillion it opened for trading.
Consequently, the NGX All Share Index (ASI) decreased by 1,139.02 basis points, representing a dip of 2.26 per cent to drop below the 50,000 psychological mark at 49,350.71 basis points from 50,489.73 basis points the stock market opened for trading.
The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are: Dangote Cement that depreciated by 9.1 per cent and MTN Nigeria Communications was down by 4.3 per cent.
Market breadth, which is measure by market sentiment was negative, as 12 stocks gained relative to 16 losers. NEM Insurance and Prestige Assurance recorded the highest price gain of 10 per cent each to close at N3.74 and 44 kobo respectively, while Ellah Lakes followed with a gain 9.78 per cent to close at N3.93, per share.
Multiverse Mining & Exploration went up by 9.57 per cent to close at N2.06, while Ikeja Hotel appreciated by 9.28 per cent to close at N1.06, per share. On the other hand, Cornerstone Insurance led the losers’ chart by 9.33 per cent to close at 68 kobo, per share.
Dangote Cement followed with a decline of 9.06 per cent to close at N241.00, while Japaul Gold and Ventures went down by 8.11 per cent to close at 34 kobo, per share.
Sovereign Trust Insurance lost 7.41 per cent to close at 25 kobo, while Stanbic IBTC Holdings shed 6.45 per cent to close at N29.00, per share.
Also, the total volume traded declined by 32.14 per cent to 140.610 million units, valued at N1.600 billion, and exchanged in 3,895 deals.
Transactions in the shares of Japaul Gold and Ventures topped the activity chart with 23.180 million shares valued at N8.951 million.
AIICO Insurance followed with 14.849 million shares worth N8.449 million, while Sterling Bank traded 14.302 million shares valued at N21.411 million.
Sovereign Trust Insurance traded 10.111 million shares valued at N2.579 million, while Guaranty Trust Holding Company (GTCO) transacted 7.850 million shares worth N160.969 million.
United Capital Plc said “we maintain that the local bourse will remain broadly bearish as higher interest rates, depressed exchange rate and political camaraderie weigh on investor sentiments in the medium term.”