Investors’ woes heightened, Monday, as the value of their investment on the Nigerian Stock Exchange, NSE, continued its downward trend, dropping further by N51.11 billion.
In particular, investment value, represented by the market capitalization, depreciated by 0.65 per cent to close at N7.845 trillion from N7.896 trillion at which it opened.
The All-share index also dropped by 0.65 per cent or 159.85 basis points to close at 24,536.96 points from 24,696.81 points at which it opened.
The decline, according to analysts, is likely as a result of uncertainty in the local and global financial landscape, brought about by the crisis in Greece among other factors.
The escalation of the Greek crisis had instant European and global impact, last week, sending world stocks tumbling and exposing European Union paralysis over whether and how to launch a second attempt in a year to save Greece from insolvency.
Euro zone finance ministers, Sunday, approved a 12 billion euro ($17.4 billion) installment of Greece’s bailout. Ministers in the Eurogroup gave the go-ahead for the fifth tranche of Greece’s 110-billion-euro financial rescue agreed last year, and said details of a second aid package for Athens would be finalised by mid-September.
There are concerns about a likely default in the repayment of the debt by Greece and its consequence on the global economy.
From left: Messrs Ganiyu Lawal, Managing Director, Clement Olowokande, Chairman, Mrs. Pheola Caulcrick, Company Secretary and Tor Nygard, Executive Director at the 51st Annual General Meeting of Berger Paints Nigeria Plc in Lagos recently
The analysts are of the opinion that the bailout and a likely default will bring about a tightening of funds, panic in the global financial system, and transfer of funds to safe haven by financial institutions, hedge fund managers, private equity firms and investment bankers, leading to a disruption in the financial system.
In the NSE, Monday, GlaxoSmithKline Consumer Plc recorded the most share price depreciation of 4.97 per cent or a loss of N1.34 to close at N25.60 per share, Union Bank Nigeria Plc followed with a loss of N0.14, representing a depreciation of 4.95 per cent to close at N2.69 per share and AIICO Insurance Plc shed N0.04 or 4.94 per cent to close at N0.77 per share.
On the contrary, Chemical and Allied Products Plc recorded the most share gain, with an appreciation of 4.98 per cent or N1.70 to close at N35.82 per share, Champion Breweries Plc followed with a share price appreciation of 4.94 per cent or a gain of N0.21 to close at N4.46 per share and Nigerian Aviation Handling Company Plc garnered N0.37 or 4.93 per cent to close at N7.87 per share.
Equity trading appreciated by 48.33 per cent as a turnover of 255.936 million shares valued at N2.421 billion was recorded in 5,493 deals, in contrast to the Friday’s turnover of 172.55 million shares valued at N1.34 billion in 4,753 deals.
The Banking sub-sector recorded the highest transaction in the sectorial analysis, accounting for 67.34 per cent of the market turnover, with 172.339 million shares valued at N1.097 billion in 3,142 deals.
Intercontinental Bank Plc recorded the most patronage, trading 33.55 million shares valued at N34.77 million in 160 deals, followed by Access Bank Plc, with the exchange of 28.63 million shares valued at N203.17 million in 163 deals and GTBank Plc recorded 25.5 million shares valued at N389.8 million in 503 deals.
The Insurance sub-sector followed on the sectorial analysis, accounting for 14.91 per cent of the market turnover, with 38.15 million shares valued at N40.88 million in 194 deals. Continental Reinsurance recorded the highest transaction in the sub-sector, trading 28.11 million shares valued at N33.01 million in 24 deals, Law Union and Rock Insurance Plc followed with the exchange of 3.03 million shares valued at N1.72 million in six deals and AIICO Insurance Plc recorded 2.83 million shares valued at N2.21 million in 82 deal
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