NASD Tumbles over Massive Selloffs in Unlisted Stocks
The NASD Over-the-Counter (OTC) Exchange recorded a big slide in the just concluded week due to massive selloffs in a number of unlisted companies’ shares. The market shed about N56 billion, more than 5% of NASD Exchange market capitalisation in a week.
Traders told MarketForces Africa that profit-taking by investors was not limited to the Nigerian Exchange (NGX) as the decline in shares valuation of unlisted stocks in the OTC market indicates generally weak sentiments that cut across all the spectrum.
Good monies in the Nigerian economy continues a search for investment options that offered higher return however, the search has been endless.
After the apex bank monetary policy committee’s fast and furious 150 basis points interest rate hike, the financial system has begun a readjustment skewed to portfolios reshuffling as yield repricing commences in the fixed income market.
As of Friday, the NASD OTC Securities Exchange Index closed the week with a negative movement of returns. Market data shows that the NSI return decreased by 5.31% to close the week at 752.59 points against 794.83 reported in the previous week.
Overall, the NASD investors lose ₦55.61 billion in value, which dragged market capitalisation below the N1 trillion mark. Unlisted stock valuation declined to ₦990.72 billion from ₦1.05 Trillion week on week due to negative movement in prices.
The trading record shows that there was a 7.40% decrease in the total value traded during the week. In the week, NASD Investors traded a total of ₦91,524,738.17 in value compared to ₦98,835,399.00 in the previous week.
This lifted total trade activity for the year to ₦20,590,871,800.68. For the week, the total volume traded printed at 10,254,299 units compared to 8,018,365 units in the previous week.
This translates to a 27.89% increase in trade volume week on week while total volume traded for the year inched to 3,163,214,802 units. Food Concepts PLC ranking top among the five most traded securities by volume and Niger Delta Exploration & Production PLC was the fifth most traded stock by volume traded in the week.
VFD Group PLC ranking top among the five most traded securities by value and Food Concepts PLC stood as the fifth most traded Security by value for the week. READ: NASD Rises on Higher Demand for Unlisted Companies Shares
Meanwhile, Food Concepts PLC, which currently holds a market capitalisation of ₦5.84 billion closed the week at ₦1.00 representing a 7.53 per cent increase from the previous close of ₦0.93
Niger Delta Exploration & Production PLC, which currently holds a market capitalisation of ₦32.65 billion closed the week at ₦180.00 representing a 20.00 per cent decrease from the previous close of ₦225.00
On the rank, Friesland Campina Wamco Nigeria PLC, which currently holds a market capitalisation of ₦172.61 billion closed the week at ₦88.40 representing a 19.64 per cent decrease from the previous close of ₦110.00.
UBN Property PLC, which currently holds a market capitalisation of ₦6.41 Billion closed the week at ₦1.14 representing a 9.52 per cent decrease from the previous close of ₦1.26
Central Securities Clearing System PLC, which currently holds a market capitalization of ₦80.00 billion closed the week at ₦16.00 representing a 5.88 per cent decrease from the previous close of ₦17.00
NASD OTC Securities Exchange Market closed on a positive note year to date as the market recorded an increase in performance, year-to-date returns increased by 1.31%.
Total volume traded year-to-date settled at 3,163,214,802 units in 1,244 deals on Friday while total value traded printed at ₦20,590,871,800.68 on Friday.
NASD Tumbles over Massive Selloffs in Unlisted Stocks
