Strike Impact: NGX Trading Resumes, Investors Witness Losses Of N103bn

The equity market commenced the week by breaking its previous session’s winning streak, with investors witnessing a loss of N103 billion, primarily driven by sell-offs in Tier-one banking stocks and cautious trading………..CONTINUE READING

Notably, declines in stocks such as FBN Holdings, United Bank For Africa (UBA), Access Corporation, Fidelity Bank, Transnational Corporation, Nigerian Breweries, WAPCO, ETranzact, among others, contributed to the market’s subdued performance.

Consequently, the market capitalization, which started at N56.172 trillion, experienced a decline of N103 billion or 0.18 per cent, closing at N56.069 trillion. Similarly, the All-Share Index dropped by 0.18 per cent or 112 points, settling at 99,118.86 compared to 99,300.38 recorded on the previous trading day, leading to a Year-To-Date (YTD) return decrease to 32.56 per cent.

Despite cautious investor sentiment, the market’s losses were not attributed to the ongoing indefinite strike by workers affiliated with the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC).

Addressing the matter, Mr. Haruna Kebira, a Stockbroker with Global View Capital Ltd., explained that stock market operations are typically unaffected by national industrial actions, except during public holidays. He emphasized that labor unions do not typically disrupt trading activities on the Exchange’s floor during strikes, as the Exchange Group is not affiliated with any workers’ union.

Kebira highlighted that the initial week of a new month often witnesses a slowdown in activities, contributing to the observed losses. He attributed the bullish run in the previous week to month-end effect activities and expressed optimism that the market would rebound positively by mid-week, especially as investors reinvest their dividends into the market.

Despite the overall market decline, the market breadth closed positively, with 23 gainers and 17 losers. Leading the gainers were Cornerstone Insurance and Deap Capital Management and Trust Plc, while ETranzact led the losers.

Trade turnover settled lower relative to the previous session, with the value of transactions decreasing by 38.92 per cent. A total of 349.59 million shares valued at N5.24 billion were exchanged in 8,082 deals.

In summary, while the equity market experienced losses, cautious optimism remains for a potential rebound in the coming days, driven by positive market fundamentals and investor sentiment.

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