Investors Lose N189bn in Nigerian Stock Market
Equities investors lost about N189 billion in the Nigerian stock market as buying temperature in the local bourse declined. Retail and institutional investors are in the midst of portfolio adjustments towards value and growth stocks.
Stockbrokers told MarketForces Africa that selloffs occur as a result of yield repricing in the fixed income market, following interest rate hikes by the monetary authority.
Accordingly, the Nigerian Exchange All-Share index dipped by 0.7% to close at 49,695.12 points in the just concluded. Order book executed indicated that profit-taking activities witnessed were witnessed in telecom and banking stocks.
Market capitalisation tumbled to N26.80 trillion on the back of negative investors’ sentiments resulting in an N188.94 billion loss in 4 out of 5 sessions. On Friday, the market year-to-date return moderated to 16.34%, trailing Nigeria’s steep inflation rate.
Driving the weekly loss, Zenith Bank shed 7%, and STANBIC lost 9%. Airtel Africa’s share price fell 2% and FBNH’s valuation went down 1.4%. Japaul Gold have a 12% haircut in its valuation, Vitafoam declined by 10% and Honeywell Flour was also priced lower by 11%.
In their separate market notes, stockbrokers said activity levels were weak, as trading volume and value declined by 20.5% and 27.8% in the wee respectively. Sectorial performance was mixed as the Insurance index popped by 1.0%, and Consumer Goods inched higher by 0.7%.
Meanwhile, the Banking index dropped off 0.6% and Oil & Gas dragged lower by 0.1%. On the other hand, the Industrial Goods index closed flat. # Investor Lose N189bn in Nigerian Stock Market. READ: Market Temperature Rises as CBN Floats OMO Auction Again
