The Nigerian Exchange Limited’s market capitalization experienced its first depreciation, the first in the New Year.
Jerrymusa.com reports that the market’s eight-day surge came to an end on Wednesday at the close of trade, with the market capitalization falling by almost N638 billion to settle at N44.885 trillion. This occurred one day after the market capitalization surpassed the N45 trillion threshold.
The All-Share Index, the exchange’s benchmark index, lost 1,167.46 points, or 1.40 percent, to close at 82,024.38 on Wednesday, even though it was still over 80,000 points.
Banking Stock was affected
Banking stocks were hit by the depreciation; the majority of them lost money, except Jaiz Bank, which went against the trend and gained 5.40 percent to close at N2.93, and Stanbic IBTC Holdings, which closed flat.
In the interim, the market capitalization a day after the lenders reached the milestone, that of Access Holdings Plc and First Bank of Nigeria Holdings, fell below N1 trillion. With a capitalization of N989 billion and N926 billion, respectively, they closed the market.
The stock market decline occurred one day after several bank managing directors were questioned by the Economic and Financial Crimes Commission, an anti-corruption organisation, over a scam that was discovered at the Ministry of Humanitarian Affairs and Poverty Alleviation.
The shares of local conglomerates Transnational Corporation Plc, AccessCorp, United Bank for Africa, Jaiz Bank, and Zenith Bank were the main forces behind the day’s market.
Stock Market Recorded 13 Winners and 61 Losers
There were 13 winners and 61 losers as a result of the negative market breadth, which gauges investor mood. The main leaders among the gainers were Cadbury Plc’s stocks, which increased by 9.92% to N19.95 per unit.
The consumer products firm announced on Tuesday that it would like to convert a N7.036 billion loan from its parent company, Cadbury Schweppes Overseas Limited, to equity. It would seek permission from shareholders in this regard.
The company disclosed that, between February 2021 and September 2023, Cadbury Schweppes Overseas loaned $23 million to Cadbury Nigeria to help settle outstanding third-party loans that the company had obtained to fund its imports of raw materials and other input costs.
This information was included in an explanatory statement on the proposed debt-to-equity conversion filed with the NGX.
The country’s difficulties with foreign money, however, prevented it from fulfilling its debt obligations, which is what prompted the board to suggest the debt-to-equity conversion proposal.
VeritasKap is one of the other winners, increasing by 9.76 percent to end at N0.45, Prestige Assurance gained 6% to end at N0.53 per unit, Transcorp Hotel gained 7.24% to end at N100 per unit, and Linkage Assurance gained 8.70% to end at N1.50.
The Break Down
Following their 10% losses to finish at N2.16, N1.80, N1.98, N5.49, N2.07, and N1.35 per unit, respectively, Chams Holdings, Cornerstone Insurance, FTN Cocoa, May & Baker, Caverton, and Consolidated Hallmark Holding Plc lead the losers’ table.
Transcorp, AccessCorp, and Guaranty Trust Holding Company Plc were the top three volume and value drivers of the day’s market trend.
The volume of transactions for the day increased to 1,641.28 million from 1,409.85 million the day before, despite the market’s decline.
shares worth N25.37 billion from 20,223 completed transactions. 123 stocks were traded on Wednesday.