Dangote Cement, Union Bank, others cause market’s over N550bn loss

Nigeria’s equities market opened the new trading week on a negative note after losing about N551billion or 1.97percent of its previous position. This month, the market has decreased by 4.21percent.

“We anticipate return of buying interest in the equities market as investors build their positions ahead of the half-year (H1) 2022 earnings and dividend season. We recommend clients follow suit by investing in our top recommended stocks as we expect bullish momentum will return to the equities market in July,” analysts at Lagos-based United Capital said in their June 20 note.

The negative close on the Nigerian Exchange Limited (NGX) on Monday came as investors sold shares of largest cement maker Dangote Cement Plc and others like Union Bank of Nigeria Plc, International Breweries Plc, Livestock Feeds Plc, and FTN Cocoa Processors Plc.

Dangote Cement share price decreased most by N27.70 or 10percent, from day-open high of N277 to N249.30; followed by Union Bank of Nigeria which was down by 60kobo or 10percent, from N6 to N5.40; while International Breweries moved down from N6.25 to N5.65, also losing 60kobo or 9.60percent.

Read also: Nigeria’s equities gain N2.16trn in May

Also, Livestock Feeds share price decreased from N1.33 to N1.20, losing 13kobo or 9.77percent, while FTN Cocoa dipped from 35kobo to 32kobo, shedding 3kobo or 8.57percent.

“With continued selloffs amid bearish sentiment in the market, we

expect to see mixed trading sessions this week as investors continue to trade cautiously,” said Vetiva analysts.

The Nigerian Exchange Limited All-Share Index and Market Capitalisation decreased to 50,756.74 points and N27.363trillion respectively on Monday as against preceding day’s highs of 51,778.08 points and N27.914trillion. The market’s positive return year-to-date (ytd) has decreased to 18.82percent.

FCMB, UBA, Access Holdings, FBN Holdings, and Transcorp were most traded stocks on the Bourse by investors who in 5,075 deals traded 345,004,508 shares valued at N3.073billion.