One-Day N500 Billion Loss in Airtel Africa Jolts Nigerian Stock Market

Upon returning from Easter Holiday to commence stock trading activities on the floor of the Nigerian Exchange Limited (NGX) on Tuesday, the local bourse recorded massive losses triggered primarily by price fall in the shares of Airtel Africa, the most valued security on the Exchange.

While the market generally closed the session on Tuesday in red with a net loss of N569.12 billion representing 1.96% decline in market index, Airtel alone contributed over N500 billion to the woe.

Specifically, Airtel Africa’s share price closed the session at N1,198 after shedding N133.1 equivalent -10% decline. Business Metrics notes that 10% decline is the highest loss permissible by the system of the local stock market.

Despite the loss, Airtel Africa remains the most valuable quoted company in the Nigerian equities market with a market value of N4.502 trillion derived from its over 3.758 share outstanding.

Reflecting the negative mood of the market which was a spill over from what obtained last week, the NGX All-Share Index closed lower at 51,952.99 basis point while aggregate valuation of listed equities in the market moderated to N28.3 trillion after the N569 billion lost to the bears during the session. Consequently, the Month-to-Date and Year-to-Date returns moderated to -4.2% and +1.4%, respectively.

The total volume traded improved significantly by 545.6% to 1.72 billion units, valued at N4.80 billion, and exchanged in 4,286 deals.

Trading statistics obtained by BUSINESS METRICS showed that TRANSCORP was the most traded stock by volume and value at 1.55 million units and N2.10 billion, respectively.

Similarly, sectoral performance was broadly negative, as the Insurance (-1.8%), Industrial Goods (-0.6%), Banking (-0.3%), and Consumer Goods (-0.2%) indices declined, while the Oil & Gas index closed flat.

As measured by market breadth, market sentiment was followed suit in red as 28 stocks lost relative to 4 gainers, who were grossly overpowered.

GAINERS

DECLINERS