Stock market closes in red as OANDO loses 9.38% over $680m London court verdict

Trading session on the floor of the Nigeria Stock Exchange (NSE) on Monday recorded bearish performance to open the week, as indices of major sectors in the market closed in red.

The benchmark index of the NSE, the All Share Index (ASI), dipped by 34 basis points to close at 37,266.86 points, while the year-to-date loss of the ASI rose to 2.55 percent.

Specifically, investors lost N45.6 billion as market capitalization, which opened at N13.55 trillion, closed at N13.40 trillion.

After the close of day’s transactions, the Oil & Gas index, which dropped by 1.85 percent, recorded the largest loss among the other sector indices on the heels of massive selloffs of Oando shares which recorded 9.38 percent loss over reports of London Court ruling against its management.

Recall that the London Court of International Arbitration ordered Ocean and Oil Development Partners, which owns a 55.96 percent stake in Oando Plc belonging to the Chief Executive Officer of Oando Plc, Wale Tibunu, and Whitmore Asset Management Limited owned by Tinubu and his partner, Omamofe Boyo, to pay a total sum of $680 million debt to Ansbury Investment Incorporated.

An analysis of the sectorial indices revealed that NSE Insurance trailed with 0.84 percent depreciation to close at 142.30 points. NSE Banking dropped by 67 basis points to close at 462.66 points, while NSE Industrial Goods fell by 20 basis points to close at 1,923.83 points.

The NSE Consumers Goods also trended southwards by 14 basis points to close at 890.25 points.

Wema Bank, Updcreit, PZ, Multi-Trex Integrated Foods and Learn Africa emerged the top five losers, all shedding 10 percent to close at 63k, N9.00, N17.10, 36k and N1.26 per share, respectively.

On the flipside, Nigerian Aviation Handling Company, Sovereign Trust Insurance, Lasaco Assurance, UACN and Unity Kapital Assurance were the top five gainers, appreciating by 9.97 percent, 8.70 percent, 5.88 percent, 5.26 percent and 3.10 percent to close at N4.08, 25k, 36k, N14.00 and N29.90 per share, respectively.

Read also: London court orders Tinubu’s firm to pay $680m debt

The most traded stocks by value include, First Bank of Nigerian Holdings, Zenith Bank, Medview Airline, Stanbic IBTC and Guaranty Trust Bank, recording N445.84 million, N398.49 million, N198.38 million, N190.58 million and N110.04 million respectively.

Medview Airline, First Bank of Nigerian Holdings, Transcorp, Multiverse and Zenith Bank were investors’ toast recording total turnovers of 100.01 million, 42.87 million, 40.55 million, 20.89 million and 16.61 worth of shares valued at N198.38 million, N445.84 million, N51.48 million, N4.18 million and N398.49 million, respectively.

In all, investors traded 303.48 million volume of shares valued at N2.04 billion in 3,403 deals, this is against 212.98 million volume of shares worth N3.24 billion exchanged on the floor on Friday in 3.143 deals.

Analysts at Cordros Capital Limited said, “selloffs are likely to persist in the near-to-medium term, in the absence of a near-term one-off positive catalyst. However, still-positive macroeconomic fundamentals remain supportive of gains on the long term.”

But, analysts at Afrinvest Securities Limited expect a rebound in subsequent sessions as investors hunt for bargain opportunities.

 

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