The Nigerian stock market began the week with a sharp decline. As a result, market capitalization fell by N659 billion, or 1.01%. It dropped from N66.147 trillion to N65.488 trillion.
Similarly, the All-Share Index also saw a drop of 1.23%. It lost 1,295.02 points, closing at 104,216.87.
According to Premium Times, this decline mainly resulted from First Holdco Plc’s Rights Issue, which became effective on April 7.
The company issued 5,982,548,799 ordinary shares at N25 each, based on a one-for-six ratio.
Consequently, market breadth ended negatively, with 51 losers and just 9 gainers.
In particular, Cornerstone Insurance and Oando Plc led the losses, each falling by 10%. Cornerstone closed at N2.97, while Oando ended at N37.80 per share.
Additionally, Secured Electronic Technology fell 10%, dropping to 45 kobo. RT Briscoe also lost 10%, closing at N2.16 per share.
Meanwhile, Honeywell Flour Mills dropped 9.98%, closing at N10.19.
However, despite the overall downturn, some stocks experienced gains. For instance, VFD Group rose 10%, closing at N62.70.
Likewise, TotalEnergies Marketing Nigeria gained 9.61%, ending at N745.00 per share.
Moreover, Guinea Insurance increased 9.52%, closing at 69 kobo. International Energy Insurance also rose 9.33%, closing at N1.64 per share.
On the other hand, Abbey Mortgage Bank gained 8.88%, closing at N5.15.
In terms of trading volume, First City Monument Bank led the market. It recorded 65.5 million shares worth N588.99 million.
Fidelity Bank followed closely, with 42.53 million shares valued at N818.38 million. Guaranty Trust Holding Company sold 34.49 million shares worth N2.33 billion.
In addition, Access Corporation traded 31.83 million shares valued at N687 million.
Finally, Zenith Bank saw 31.68 million shares change hands, valued at N1.47 billion.
“The mixed performance was largely attributed to the listing of First Holdco Plc’s Rights Issue of 5,982,548,799 ordinary shares at 50 kobo each, priced at N25 per share on a one-for-six basis, effective April 7.”
According to Premium Times, the market’s performance was heavily influenced by the timing of this rights issue.
Article updated 3 weeks ago. Content is written and modified by multiple authors.
