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Nigeria’s high 10 firms lose N2.43tr amid worth crash

By Taofik Salako, Deputy Group Business Editor

Nigeria’s 10 largest firms by market capitalisation misplaced greater than N2.43 trillion in six weeks as world scare brought on by the unfold of Coronavirus and subsequent crude oil crash fuelled main selloffs within the Nigerian equities market.

Market evaluation confirmed that market worth of the 10 most capitalised firms on the inventory market dropped from N11.71 trillion on February 03, 2020 to shut at N9.28 trillion on March 13, representing a drop of N2.43 trillion.

The 10 most capitalised firms on the Nigerian Stock Exchange (NSE) included Dangote Cement, MTN Communications Nigeria, BUA Cement, Airtel Africa, Nestlé Nigeria, Guaranty Trust Bank, Nigerian Breweries, Stanbic IBTC Holdings, Zenith Bank International and Seplat Petroleum Development Company.

A breakdown indicated that Dangote Cement, essentially the most capitalised firm depreciated by N459 billion. MTN, the second most capitalised firm, misplaced N537 billion in the course of the interval. BUA Cement, which just lately emerged the third largest firm, misplaced N58 billion.

Others included, Airtel Africa, N48 billion; Nestle Nigeria, N654 billion; Guaranty Trust Bank, N323.746 billion; Nigerian Breweries, N215.91 billion; Stanbic IBTC Holdings, N94.02 billion; Zenith Bank, N281.01 billion whereas Seplat dropped by N35.6 billion.

Benchmark indices indicated common decline of 21.18 per cent in the course of the interval. Aggregate market worth of all quoted equities additionally dropped by N3.01 trillion from N14.86 trillion to N11.847 trillion.

Analysts agreed that the steep decline was as a result of unabated unfold of Covid-19 and the crash in crude oil worth occasioned by the crude oil output struggle between Saudi Arabia and Russia.

“As oil prices struggle to trend upwards amid no respite for the COVID-19 outbreak, we expect sentiment to remain bearish in the next trading session,” Afrinvest Securities said.

Analysts at GTI Securities said that the persevering with decline was because of anxieties over the “impact of the oil price war between Russian and Saudi Arabia on the Nigeria 2020 budget”.

The Association of Securities Dealing Houses of Nigeria (ASHON), nonetheless, allayed fears concerning the outlook for the inventory market, assuring the investing public that the market would quickly bounce again.

Although it acknowledged excessive stage of downswing available in the market, stockbrokers mentioned the basics of quoted firms stay robust.

Chairman, Association of Securities Dealing Houses of Nigeria (ASHON), Chief Oyinyechukwu Ezeagu, defined that the inventory market remained a part of the worldwide exchanges and as such any growth within the world market would influence on its operations.

“The effect of the coronavirus is gradually affecting trading all over the world and whatever happens elsewhere reflects in our market. The centre of it all is China and being a major world power both in productive and consumption capacities, any ill wind affecting China would naturally cause a big sneezing to the rest of world. Investors should not panic. The share prices will bounce back. The companies’ fundamentals remain strong. Many investors are taking advantage of the bearish run to beef up their portfolios,” Ezeagu mentioned.

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