Capitalisation dips by N500b amid selloff in Airtel Africa, 17 others

THE domestic equities market reopened on a downturn yesterday declining by N500 billion, amid a selloff in Airtel Africa and 17 stocks.

The All- Share Index ( ASI) shed 883.57 points, representing a loss of 0.89 per cent to close at 98,703.68 points. Also, market capitalisation declined by N500 billion to close at N55.823 trillion.

The decline was driven by price depreciation in large and medium capitalised stocks amongst which are; Airtel Africa, Nigerian Aviation Handling Company ( NAHCO), Stanbic IBTC Holdings, Berger Paints and Nigeria and Industrial & Medical Gases Nigeria ( IMG).

Analysts at United Capital Plc said: “We expect the bearish sentiments amongst investors to persist in the local equities market given the recent developments in the fixed- income market.

“The impact of the high yields in the fixed- income market will continue to drive sell- offs as investors switch their asset classes to less risky assets. However, we expect bargain hunting activities to lurk in the shadows, owing to the tremendous opportunities presented by the recent bearish trend ( particularly around the banks).”

Investor sentiment, as measured by market breadth, closed positive as 38 stocks advanced, while 18 declined.

Cornerstone Insurance and Guinea Insurance emerged as the highest price gainer of 10 per cent each to close at N1.98 and 33 kobo respectively . National Salt Company of Nigeria ( NASCON) Allied Industries and Oando followed with a gain of 9.94 per cent each to close at N47 and N9.95 kobo respectively, while Wema Bank advanced by 9.42 per cent to close at N7.55 kobo. On the other side, Airtel

Africa led others on the losers’ chart with 10 per cent to close at N1,980, per share. Berger Paints followed with a decline of 9.85 per cent to close at N12.40 kobo while Industrial and Medical Gases shed 9.82 per cent to close at N12.40 kobo.

International Energy Insurance went down by 9.35 per cent to close at N1.26 kobo while International Breweries depreciated by nine per cent to close at N4.35 kobo.

The total volume of trade decreased 5.6 per cent to 421.728 billion units, valued at N8.954 billion, and exchanged in 10,624 deals. Transactions in the shares of Access Holdings led the activity with 98.237 million shares worth N1.761 billion. United Bank for Africa ( UBA) followed with an account of 40.396 million shares valued at N1.071 billion, while Guaranty Trust Holding Company ( GTCO) traded 35.906 million shares valued at N1.494 billion.