NGX Sees Large Drop as Investors Adjust to FX Regulation
The Nigerian Exchange (NGX) sees a large drop in stock value on Thursday as equities investors’ adjust holdings following new regulatory dynamics in the foreign exchange market. Domestic bourse depreciated by N159.5 billion as investors react to the unofficial depreciation of the local currency in the black market segment.
Due to selloffs, the local bourse extended losses as the benchmark index drop to 38,484.82 points. Consequently, NGX market capitalisation printed atN20.05 trillion on account of price depreciation in major tickers during the trading session.
Data shows that stock market breadth retained its negative status with 17 gainers versus 22 losers.
However, market activities edged higher with both the volume and value of stocks traded on the exchange appreciating by 9.45 per cent and 5.28 per cent respectively.
According to Atlass Portfolio, a total of 259.96 million units of shares valued at N1.98 billion were traded in 4,975 deals.
OANDO led the volume chart, accounting for 21.65 per cent of the total volume of trades, followed by GTCO (5.88%) JAIZBANK (5.73%) FIDELITYBK (5.54%), and WEMA (4.70%) to complete the top five on the volume chart.
GTCO led the value chart accounting for 22.50 per cent of the total value of trade on the exchange.
TRIPPLEG, REGALINS, CHIPLC topped the gainers’ chart, with their share prices advancing by 10.00 per cent, 9.76 per cent, and 9.26 per cent, respectively.
OANDO led the losers’ table with its share price depreciating by 9.70 per cent to close at N4.75 after opening the day at N5.26.
In a market report, Afrinvest limited said performance across sectors under its coverage was bearish as 4 indices lost while 2 indices gained.
Topping the laggards is the Industrial Goods and Oil & Gas indices, down 2.0% and 1.9% respectively driven by price depreciation in BUACEMENT (-5.2%) and OANDO (-9.7%).
Similarly, the Banking and Consumer Goods indices fell by 0.8% and 0.4% respectively, due to selling pressure on GTCO (-1.7%), ACCESS (-1.6%), NASCON (-3.7%), and DANGSUGAR (-1.6%).
On the other hand, the Insurance and AFR-ICT indices gained 3.2% and 0.2% respectively, on the back of buying interest in REGALINS (+9.8%), CHIPLC (+9.3%), MBENEFIT (+5.4%), and MTNN (+0.4%).
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“In the final trading session, we anticipate an extension of the selling pressure as investors continue to adjust their holdings in response to the recent FX regulation. Albeit, we see a potential for bargain hunting in the market”, Afrinvest said.
