Equities Investors Lose N561bn as NGX Extends Bearish Run
The Nigerian equities market extended its bearish run on Thursday, with the All-Share Index declining 0.37% to settle at 242,227.31 points. The local bourse shrank as sell pressure persisted for four days straight, in what some stockbrokers now call a price correction after a fast-and-furious rally.
In a chat with MarketForces Africa, stockbrokers said many listed companies have been trading above their fair value, which calls for correction, after earnings season euphoria fizzled out.
The Armageddon of sell-offs knocked out N1.81 trillion from the Nigerian Exchange market capitalisation on Monday, N478 billion on Tuesday, and N2.28 trillion on Wednesday.
Today, the bearish run dragged the Nigerian bourse year-to-date return down to +55.66%, erasing ₦580.65 billion from market capitalisation, which closed at ₦155.36 trillion.
Trading activity weakened considerably across the board, with volume, turnover, and deal count declining 36.24%, 34.05%, and 17.28% to 588.46 million shares, ₦42.27 billion, and 57,352 transactions, respectively.
Market breadth was negative at 0.8x, as 30 decliners led by MCNICHOLS, ABCTRANS, ETERNA, ARADEL, and NPFMCRFBK outpaced 24 advancers, with INTENEGINS, OMATEK, ABBEYBDS, CUTIX, and JOHNHOLT recording the most notable gains.
Sectoral performance was mostly negative, as Oil & Gas (-4.90%), Commodity (-3.28%), Insurance (-0.58%), and Consumer Goods (-0.03%) all finished in negative territory, while Industrial (+0.56%) and Banking (+0.31%) bucked the trend.
Heading into Friday’s session, stock analysts at Cowry Asset Management Limited said the market is expected to maintain its bearish tone, as continued profit-taking weighs on investor sentiment. GCR Affirms MTN Nigeria AAA Ratings, Outlook Stable
