Investors Lose N1.14trn after Unusual Price Swings Warning
Equities investors in the Nigerian market lost N1.14 trillion on Tuesday after the regulator warned investors of unusual price swings and urged caution.
Investors booked profits on stocks that recently posted sharp price gains, with notable selling pressure in BUA Foods, MTN Nigeria, and others.
The market closed today’s session in negative territory, as the key performance indicator decreased by 0.91%, moderating the year-to-date return to 24.98%.
The market suffered a setback amid selloffs in BUAFOODS, STANBIC, MTNN, NB, and ARADEL, among others.
The Consumer goods sector declined the most, losing 4.74%. The All-Share Index fell by -1,778.95 basis points in today’s trading session, indicating a -0.91% decline to close at 194,484.61.
Market capitalisation fell by ₦1,141.81 billion to close at ₦124.83 trillion. Total volume of all trades executed in the local bourse declined by -4.94% while the total value of all traded increased by +92.58%.
Stockbrokers reported that approximately 1,137.41 million units valued at ₦53,353.43 million were transacted across 72,218 deals.
As for volume, JAPAULGOLD accounted for 9.11% of total transactions, the most traded, followed by ACCESSCORP (8.70%), FTGINSURE (6.68%), ZENITHBANK (6.01%), and FCMB (4.12%).
In terms of value traded, ARADEL accounted for 14.07% of total trade, making it the most traded on the exchange. JAIZBANK topped the performers chart, gained +10.00%, followed by INFINITY (+9.83%), FCMB (+9.72%), FTGINSURE (+9.09%), STERLINGNG (+7.50%), TIP (+5.70%), and 20 others.
MTN Nigeria lost about 3% of its N16 trillion market valuation in the crossfire after the Nigerian Exchange sounded a cautionary warning over unusual price swings in some stocks.
A total of forty stocks depreciated, according to trading data. With a price depreciation of -10.00% each, DAARCOMM and TANTALIZER topped the worst performers’ chart.
Other decliners include BUAFOODS (-9.99%), ELLAHLAKES (-9.96%), JAPAULGOLD (-9.95%), RTBRISCOE (-9.95%), and MBENEFIT (-9.91%). Hence, the market breadth closed on a negative note, with 26 gainers and 40 losers.
Sectoral performance was mixed. The Banking, Oil & Gas, and Industrial Goods indices recorded gains of 1.23%, 0.15%, and 1.92%, respectively, while the Insurance and Consumer Goods indices declined by 1.31% and 4.74%.
The Commodity index closed flat at 0.00%. Trading activity was subdued across most metrics, with the number of deals falling 24.05% to 72,218 and trading volume declining 11.74% to 1.14 billion units. However, total transaction value surged by 69.27% to ₦53.35 billion
