After 11 straight days of gain from December 27, 2019 till January 13, 2020 the Nigerian equities market recorded a growth of 12.88%. It however closed lower on Tuesday, January 14 as the All Share Index declined by 1.18% to settle at 29,283.15 points against the previous close of 29,633.58 points on Monday.
Heavily capitalized stocks like Dangote Cement and MTN Nigeria on Tuesday closed lower; and this could be significantly linked to the reason why the market closed lower. The impact of these heavily capitalized usually dictates the extent of growth or decline of the Nigerian Bourse at the close of trade.
Dangote Cement is the most capitalized stock on the floor of the Nigerian Stock Exchange with over 2.93 trillion market capitalisation. This is followed by MTN Nigeria with the market capitalization of 2.36 trillion.
MTN Nigeria was highest percentage gainer the previous day, gaining 10% to close at N126.7. It however declined at the close of trade on Tuesday by 2.66% to close at N124.2.
Another significant reason for the market decline would be based on this fact of life that “whatever goes up must surely come down”.
The Market capitalisation declined by 1.18% to close at N15.106 trillion against the previous close of N15.287 trillion.
Aggregate volume of traded stocks closed at 666.78 million units, up by 91.47% away from the previous close of 348.24 million units.
The value of traded stocks declined by 23.77%, closing at N6.5 billion against the previous close of N8.5 billion.
Total number of deals at the close of trade was 5,711, up by 6.21% from the previous close of 5,377 deals on Monday.
Market Breadth
The market Breadth closed negative as 13 stocks gained while 23 stocks declined in their share prices.
Percentage Gainers
Beta Glass led the gainers’ list with 9.67% growth to close at N59.00 against the previous close of N53.80.
C&I Leasing, Eko Corp Plc, Forte Oil, Cadbury and Union Diagnostics among other gainers also grew their share prices by 8.89%, 7.22%, 5.62%, 5.26% and 5.00% respectively.
Percentage Losers
Tourist Company of Nigeria Plc led other price decliners, shedding 10% of its share price to close at N3.15 from the previous close of N3.50.
NEM Insurance, NPF Microfinance Bank and Consolidated Hallmark Insurance among others also shed their share prices by 9.69%, 9.56% and 9.52% respectively.
Volume Drivers
- Union Diagnostics traded about 340.2 million units of its shares in 7 deals, valued at about N71.4 million.
- Zenith Bank traded about 69.72 million units of its shares in 683 deals, valued at N1.5 billion.