Twitter Ban Threatens Nigerian Stock Market
Trading resumed on the Nigerian Exchange (NGX) for the week on Monday with negative sentiments following the country’s suspension of the use of Twitter.
The market capitalisation shed N20 billion to close at N20.16 trillion as the All-Share Index dipped 39.70 points or 0.10 percent to close at 38,686.40.
The Nigerian Exchange’s month-to-date gain moderated to 0.7 percent, while year-to-date loss increased to 3.9 percent.
The bearish sentiment was due to investors’ sell-off in medium and large capitalised stocks, amidst the rise in the yield of the Federal Government June savings bond.
The market loss was driven by price depreciation in large and medium capitalised stocks, amongst which are Guaranty Trust Bank, Unilever, Lafarge Africa, Union Bank of Nigeria, and FCMG Group.
Experts are now speculating that the imposed ban on Twitter might weigh on the markets and lead to a deeper selloff from diminished confidence.
Market sentiment closed negative with 13 gainers in contrast with 28 losers.
Juli Plc led the losers’ chart in percentage terms with 9.93 percent to close at N1.36 per share. CWG Plc followed with 9.80 percent to close at N1.38, while Japaul Gold and Ventures shed 8.47 percent to close at 54k per share.
On the other hand, Morison Industries dominated the gainers’ chart in percentage terms with 9.73 percent to close at N1.24 per share.
However, the total volume of trades rose by 5.9 percent to 210.75 million shares valued at N1.45 billion in 3,958 deals.
This was against 199.06 million shares worth N1.59 billion exchanged in 3,150 deals on Friday.
Transactions in the shares of FBN Holdings topped the activity chart with 16.64 million shares valued at N121.04 million.
Zenith Bank sold 15.94 million shares worth N365.89 million, while Japaul Gold and Ventures transacted 13.18 million shares worth N7.16 million.