NGX Sheds N296bn as Equities Investors Book Profit
The Nigerian Exchange (NGX) shed more than N296 billion on Thursday due to a negative shift in market sentiment. Market capitalisation nosedived as equities investors in the local bourse took profit on companies’ stocks that recorded steep gains previously.
Today, stockholders took quick profit after the local bourse expanded more than N1 trillion earlier this week, crossing N38 trillion in market capitalisation. A negative shift in buying sentiment that was seen in the exchange today dragged stock market performance indicators lower by -0.76%.
This was due to profit-taking in FBNH, MTNN, BUACEMENT, and others, according to data from the local bourse. These stocks had rallied strongly this week. Though still ahead of the annual inflation rate of 26.72%, year-to-date return moderated to 36.67% after profit-taking on previously rallied stock in the local bourse.
Consequent to the selloffs, the market index or the All Share Index tracked downward by 539.48 basis points, representing a decrease of -0.76% to close at 70,042.28.
Stockbrokers said in their separate report that market activities plunged as the total volume and total value that exchange hands dropped by -12.68% and +44.73% respectively. Atlass Portfolios Limited told investors in its market update that approximately 525.46 million units valued at ₦6,088.51 million were transacted in 8,396 deals.
JAPAULGOLD was the most traded stock in terms of volume, accounting for 17.59% of the total volume of trades. The company was followed by FIDELITYBK (12.81%), UBA (8.85%), FCMB (8.15%), and CHAMS (5.92%) to complete the top 5 on the volume chart.
UBA was the most traded stock in value terms, with 15.99% of the total value of trades on the exchange. OMATEK topped the advancers’ chart with a price appreciation of 10.00 per cent.
The stock was trailed by ACADEMY (9.83%), PRESTIGE (+9.76%), TANTALIZER (+9.76%), DAARCOMM (+8.70%), and twenty others.
Twenty-eight stocks depreciated, according to data from the Nigerian bourse. CHAMS was the top loser, with a price depreciation of -9.84%. Other stocks on the losers chart include INTBREW (-8.79%), FBNH (-8.14%), UNITYBNK (-6.93%), ACCESSCORP (-2.79%), and BUACEMENT (-1.87%).
Given the trading pattern seen during an intraday session, the market breadth closed negative, recording 25 gainers and 28 losers. Likewise, the market sector performance was negative.
Trading results showed that three out of the five major market sectors went down. The Banking sector shed 0.85%, followed by a 0.65% decline recorded by the Industrial sector.
The Consumer goods index backpedalled by 0.91%. While the Insurance sector grew by +1.56%, the Oil and Gas sector closed flat. Overall, equities market capitalisation lost ₦296.39 billion, representing a decline of -0.76%, to close at ₦38.48 trillion from ₦38.78 trillion the previous day. Senate Approves 2023 N2.17trn Supplementary Appropriation Bill