The equities market of the Nigerian Stock Exchange (NSE) on Tuesday extended its losing streak with the market capitalisation shedding N656 billion, as panic, sell-off continued on the Exchange.
For instance, the market capitalisation which opened at N13.365 trillion lost N656 billion or 4.91 per cent to close at N12.709 trillion, the highest daily loss in four years.
Similarly, the All-Share Index (ASI) dipped 1,258.88 or 4.91 per cent dropping to 24,388.66 compared with 25,647.54 achieved on Monday.
Thus, the Month-to-Date and Year-to-Date losses increased to -7.0 per cent and -9.1 per cent, respectively.
Market breadth closed negative, with three gainers and 33 losers.
Dangote Sugar Refinery, Fidelity Bank, NASCON Allied Industries, Stanbic IBTC Holdings and MTN Nigeria led the losers’ chart with 10 per cent loss each, to close at N9.90, N1.62, N11.70, N28.35 and N103.50, per share, respectively.
Union Bank of Nigeria, Nigerian Breweries, Guaranty Trust Bank, International Breweries and CAP followed with a decline of 9.93 per cent each, to close at N6.35, N33.10, N19.95, N6.35 and N19.95 per share, respectively.
Lafarge Africa declined by 9.89 to close at N12.30, while Oando shed 9.88 per cent to close at N2.19 per share.
Conversely, Neimeth International Pharmaceuticals led the gainers’ table in percentage terms, gaining 10 per cent, to close at 44k per share.
Honeywell Flour Mill followed with 3.45 per cent to close at 90k, while NEM Insurance increased by 1.16 per cent to close N1.75 per share.
However, the total volume of shares sold increased by 220.3 per cent as investors bought and sold 594.55 million shares valued N4.21 billion exchanged in 4,010 deals.
This was against 185.65 million shares worth N1.83 billion achieved in 2,690 deals on Monday.
Transactions in the shares of United Bank for Africa topped the activity chart with 166.42 million shares valued N942.73 million.
FBN Holdings followed with 163.96 million shares worth N724.83 million, while Guaranty Trust Bank traded 54.52 million shares valued N1.09 billion.
Fidelity Bank accounted for 31.93 million shares valued N51.73 million, while Zenith Bank transacted 30.09 million shares worth N392.62 million.
Commenting on the continuous selloff, the Managing Director, APT Securities and Funds Ltd., Garba Kurfi, attributed the development to panic selling by foreign investors due to fear of naira devaluation.
Mr Kurfi stated that news of COVID-19 led to a crash in global oil prices, which triggered a share dumping in global markets.
He added that 10 per cent loss by MTN Nigeria Communications which controlled 15 per cent of the total market capitalisation contributed to the huge loss by market indices.
Mr Kurfi, however, expressed optimism that the current recovery in the price of crude oil which rose by nine per cent would likely reflect in the prices of stocks in the days to come.
The Chief Operating Officer, InvestData Ltd., Ambrose Omordion, said the nation’s stock market losses were beyond coronavirus and oil price crash impact considering the pattern of decline since Cash Reserve Ratio was adjusted up in January.
“The dwindling confidence and low liquidity in the equity segment, despite the impressive high dividend yields showed that something is wrong with the companies, corporate governance and the economy,” Mr Omordion said.