The stock market resumes trading in May with losses of N58 billion.

Yesterday, the market capitalization of the Nigerian Exchange Limited (NGX) decreased by N58 billion, ending three sessions of gains and starting trading for the month of May on a negative note.

In particular, the All-Share Index (ASI) declined by 107.03 points at the reopening of trading for the month of May, or 0.20 percent, to close at 52,296.48 points. As a result, investors lost N58 billion in value, bringing the market cap down to N28.476 trillion.

Price increases in large and medium capitalized stocks, including Geregu, NGXGroup, PZ Cussons, African Prudential Lafarge WAPCO, International Breweries, Cadbury, and Custodian & Allied Insurance, were the primary cause of the decline.

“We expect bullish sentiments to continue, as investors look to take advantage of fundamentally sound stocks with low pricing, with Q1 2023 earnings season already underway,” said United Capital Plc. We do believe there is room for some profit-taking, though.

Market breadth indicates a positive mood as 30 stocks rose in value compared to 23 decliners. “Investors took positions in GTCO and NASCON post mark-down, as both counters closed the day in the green,” according to analysts at Vetiva Dealings and Brokerage. In anticipation of potential price increases, we anticipate investors to continue buying stocks at deep discounts.

On the price movement chart, Transcorp was in second place with a loss of 9.96% to close at N2.53 kobo, while Geregu Power Plc was at the top with a 10% decline to close at N290.70 kobo.

Africa Prudential dropped 9.40% to close at N5.30 kobo; International Breweries dropped 8.51% to close at N4.30 kobo; and Ikeja Hotel dropped 6.85% to close at N1.36 kobo. PZ Cussons lost 6.56 percent of its value to close at N12.10 kobo. To close at 30 kobo, Mutual Benefit Assurance suffered a 6.25 percent loss. The price of Honeywell Flourmill dropped by 5.45% to close at N2.96 kobo. RTBriscoa lost 4% to end the day at 24 kobo. To close at N26.50 kobo, NGXGroup fell 3.28 percent. Jaiz Bank lost 3.16 kobo as well, ending the day at 92 kobo.

Conoil Plc and Union Bank of Nigeria, however, led the gainers chart, rising by 10%.

Wema Bank gained 7.89% to end the day at N4.10 kobo. To close at N14.30 kobo, National Salt Company of Nigeria increased by 7.52 percent. Chams increased 7.14% to finish at 30 kobo. Royal Exchange increased 7.14% to finish at 60 kobo. By 6.25 percent, Sterling Bank increased to close at N1.70 kobo. Vitafoam also saw gains, closing at N17.95 kobo with a 6.21% gain.

In total, investors traded 550.293 million shares worth N5.153 billion in 6250 deals compared to the 3.128 billion shares worth N13.068 billion that were traded in 5573 deals the day before.

With 150.071 million shares valued at N1.569 billion, Access Corp Plc’s share transactions dominated the day’s activity. Transcorp was close behind with an account of 134.253 million shares valued at N417.481 million.

Wapic Insurance exchanged 29.064 million shares valued at N12.871 million; Mansard Insurance traded 41.863 million shares worth N100.895 million; and Fidelity Bank exchanged 20.084 million shares valued at N111.072 million.

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