Low confidence in the economy has continued to trigger panic selloff in the equities sector of the Nigerian Exchange Limited as investors’ lose N2.55 trillion in two trading days. Specifically, the market capitalisation of listed equities which closed for transaction on February 16, 2022 at N57, 849 trillion shed N2.55 trillion or 4.6 per cent to close at N55, 208 trillion yesterday.Also, the All-Share Index which measures the performance of listed equities also dipped by 4,622 from 105,722.78 to 101, 060.67.
Reacting on the development, Head Equity, Planet Capital, Dr Paul Uzum said: “There is sell pressure in the market. N1,800 Naira to dollar has caused panic and fear. The market thrives on confidence.
“Once investors confidence on the economy is low, people will not invest. At the moment all eyes are on the exchange rate, until the government can appropriately stabilise the Naira, investors confidence will not return.” Yesterday’s downturn was driven by price depreciation in large and medium capitalised stocks amongst which are BUA Cement, Guinness, PZ Cussons, Dangote Sugar Refinery, FBN Holdings and Unilever. On the price movement chart, 43 stocks depreciated in price while eight constituted the gainers chart. Juli led the gainers chart, adding 9.94 per cent to close at N1.77 kobo while Eterna Plc followed with a gain of 6.17 per cent to close at N17.20 kobo.
Veritas Kapital appreciated by 5.97 per cent to close at 71 kobo. Geregu Power increased by 3.68 per cent to close at N985 while Tantalizer also added 2.63 per cent to close at 39 kobo. On the other hand, Honey Flour Mills topped losers chart,.dropping by 10 per cent to close at N3.60 kobo. BUA Cement trailed with a loss of 9.98 per cent to close at N142.95 kobo. PZ Cusson was down by 9.75 per cent to close at N27.30 kobo. UPDC REIT fell by 9.32 per cent to close at N5.35 kobo, NEM Insurance dipped by 8.63 per cent to close at N6.35 kobo.
Volume of transactions declined as investors traded 256.156 million shares valued at N6.628 billion in 8783 deals against 273.851 million shares worth N7.439 billion in 9688 deals. Further breakdown of transactions yesterday showed that Transnational Corporation of Nigeria led market activities with 39.746 million shares valued at N528.451 million, United Bank for Africa followed with account of 26.025 million shares cost N624.495 million.
Zenith Bank traded 21.009 million shares valued at N750.539 million, GTCO Plc traded 13.798 million shares worth N535.511 million, Veritas Kapital exchanged 11.828 million shares valued at N8.519 million. Recall that Dangote Cement Plc and MTN Nigeria Plc recorded a combined loss of about N1.878 trillion at the end of transactions on Monday, depreciating 10 per cent each. 38 stocks also depreciated in price at the end of transactions on Monday while 19 others gained.
