Nigerian Exchange Cracks as Equity Investors Pull Out Funds
Equities investors trading highs and lows on Nigerian Exchange (NGX) lost about N472 billion on Monday as investors pulled out funds from selling their banking, insurance, industrial and consumer stocks
The selling actions that started two weeks ago have lingered as Q3 earnings festival euphoria fades. Within the period, the market has been bleeding for 10 out of 11 trading sessions, with an all-week price depreciation last week alone.
The sustained negative sentiment dragged key performance indicators southward at the beginning of the week after N2.83 trillion was knocked off from the NGX market cap last week. Key performance indicators fell by 0.48%, and year-to-date return moderated again.
The downturn was propelled by investors exiting positions in some blue-chip and mid-cap stocks across major market sectors, particularly within the insurance sector, which shed 4.24%.
Stockholders particularly sell down interest in AIICO, ACCESSCORP, and UBA, among others. Hence, the Nigerian Exchange All-Share Index decreased by -501.74 basis points today, representing a drop of 0.50% to close at 148,781.90.
With the trading actions and directions, the Nigerian Exchange market capitalization reduced by ₦471.99 billion to close at ₦94.52 trillion.
Trading activities were negative, as the total volume of all trades conducted in the market and the total value traded declined by -30.89% and -26.20%, respectively.
In a note, Atlass Portfolio Limited told investors that approximately 364.35 million units valued at ₦11,353.23 million were transacted across 32,564 deals.
ACCESSCORP took the lead volume chart, accounting for 6.29% of total volume traded, followed by ZENITHBANK (6.05%), CHAMS (4.92%), ASOSAVINGS (4.07%), and AIICO with 3.87%.
DANGCEM accounted for 19.00% of the total value of all trades consummated, making it the highest traded counter on the exchange.
ASOSAVINGS topped the best performer’s chart, gained +10.00%, followed by DEAPCAP (+9.83%), CORNERST (+8.70%), NEIMETH (+8.65%), JAPAULGOLD (+6.70%), FIDELITYBK (+4.81%), and seven others.
A total of forty stocks depreciated on Monday in the local bourse. LINKASSURE and RTBRISCOE topped losers chart with a price depreciation of -10.00% each, followed by NAHCO (-9.95%), AIICO (-9.89%), MBENEFIT (-9.89%), and UPDC (-9.86%).
Hence, the market breadth closed on a negative note, as there were only 13 gainers and 40 losers. Also, market sectoral performance was negative except for the oil and gas index, which closed flat.
The insurance sector declined by -4.24%, the consumer goods sector fell by -1.32%, the banking sector slipped by -0.65%, and the industrial goods sector dipped by -0.01%. GCR Keeps FBNQuest Merchant Bank Outlook on Rating Watch Negative
