12th February, 2024
By Rukayat Adeyemi
Investors on the stock market of the Nigerian Exchange Ltd. (NGX) on Monday reacted to the death of Dr Herbert Wigwe, Group Chief Executive Officer (Group CEO), Access Holdings by reducing their stock in the corporation.
The News Agency of Nigeria (NAN) reports that Wigwe, his wife, son and Mr Abimbola Ogunbanjo, former Chairman of NGX Group died on Friday in a helicopter crash in Southern California, U.S.
Specifically, shares of Access Holdings, which opened at N24.75 per share, lost 6.26 per cent to close at N23.20 per share.
However, the corporation led the activity chart in volume with 24.90 million shares traded at N575.10 million.
In a reaction, Mr David Adonri, Vice Chairman, Highcap Securities Ltd., said that the capital market is information driven.
According to him, the news of the death of Wigwe is a price sensitive event capable of affecting price on the equity.
Adonri said, Wigwe, who was a big weight in Access Holdings and the Nigerian economy, affected investors trading decision on the stock of the holding.
He explained that investors reacted negatively to Wigwe’s death by reducing their stock on the market.
“However, in my own opinion, there is no cause for alarm because Access Holdings is well structured with good corporate governance and security on ground,” he said.
Meanwhile, the local bourse opened the week with gains, as the All-Share Index closed 0.18 per cent or 183.95 points higher to close at 102,042.32 points, compared to 101,858.37 recorded on Friday.
Similarly, market capitalisation, which opened at N55.735 trillion, gained N101 billion to close at N55.836 trillion. Consequently, the Year-To-Date (YTD) return rose to 36.47 per cent.
Investors buy interests in BUA Foods, Geregu and Zenith Bank drove the market to a positive terrain.
A total of 242.43 billion shares valued at N5.13 billion were exchanged in 8,715 deals, compared to 321.89 million shares valued at N7.35 billion in 8,925 deals posted on Friday.
While Access Corporation led the activity log, Veritas Kapital Assurance followed with 24.20 million shares worth N17.45 million per share.
GTCO sold 21.17 million shares worth N841.25 million to lead the log in deals and First Bank Nigeria Holdings (FBNH) traded 17.23 million shares valued at N439.39 million per share.
Also, Transcorp transacted 17.08 million shares worth N229.22 million per share.
On the gainers’ log, NCR Nigeria Plc, Chams and Royal Exchange Assurance led in percentage terms of 10 each to close at N4.40, N2.75 and 77k per share, respectively.