Equities Investors Lost N303bn as Market Correction Begins
Equities investors lost N303 billion to sell pressures in the Nigerian Exchange (NGX) on the back of market correction of some overpriced stocks. The bullish momentum was halted on Thursday due to profit-taking activities in some medium- and blue-chip stocks after a series of monster rallies that included stocks with weak fundamentals.
Data from the Nigerian bourse showed that the market index snapped its 6-day positive streak as it shed 40 bps to close at 120,772.68 points, while market capitalisation declined by N303 billion to settle at N76.46 trillion.
Top decliners include BUAFOODS (-6.46%), OANDO (-9.96%) and FIRSTHOLDCO (-3.28%) drove the day’s decline and masked positive sentiment in BUACEMENT (+5.90%) and TRANSCOHOT (+9.62%).
The All-Share index shed 446.18 basis points today, settling at 120,811.51 index points, while year to date return moderated.
Stockbrokers said the market pullback highlights the impact of strategic profit-taking, as investors moved to secure recent gains following the market’s sustained rally. The day’s loss also signalled a dip in investors’ wealth and pointed to a more cautious market sentiment.
However, market activities were mixed today as the total volume of trades increased by 1.94%, while the total value of trades reduced by 31.31%.
Atlass Portfolio Limited told investors in its market update that approximately 878.37 million units valued at ₦17,979.97 million were transacted across 25,121 deals.
In terms of volume, ELLAHLAKES led the activity chart, accounting for 12.76% of the total volume of all trades executed in the market, followed by ACCESSCORP (8.57%), CAVERTON (7.29%), JAPAULGOLD (6.92%), and ZENITHBANK (6.78%), rounding out the top five.
ZENITHBANK emerged as the most traded stock in value terms, accounting for 19.10% of the total value of trades on the exchange.
UNILEVER topped the advancers’ chart for today with a price appreciation of 10.00 percent, trailed by NEIMETH (+9.98%), UACN (+9.97%), CAP (+9.92%), PRESTIGE (+9.80%), TRANSCOHOT (+9.62%) and twenty-five others.
Thirty-seven stocks depreciated, according to stock market update. THOMASWY was the top loser, with a price depreciation of -10.00%. Other decliners include NAHCO (-9.99%), OANDO (-9.96%), LIVESTOCK (-8.16%), BUAFOODS (-6.46%), and ACCESSCORP (-1.95%) also dipped in price.
Today, the market breadth closed negative, recording 31 gainers and 37 losers. However, sectoral performances were mixed, with the consumer goods (-1.44%), oil and gas (-1.25%), and banking (-0.57%) indexes closing bearish on the back of selloffs in BUAFOODS (-6.46%), OANDO (-9.96%), and FIRSTHOLDCO (-3.28%), respectively.
Conversely, the industrial goods (+2.11%) and insurance (+1.08%) indices witnessed bullish sentiment due to buying interest in BUACEMENT (+5.90%) and NEM (+1.70%). Elsewhere, the Commodity Index closed flat. #Market Correction: NGX Halts Rally, Equities Investors Lose N303bn Naira Sees Weekly Gain Amidst Zero FX Intervention
