Nigerian Exchange Plunges by N883bn as Investors Book Profit

Nigerian Exchange Plunges by N883bn as Investors Book Profit

Reversing the previous trend, the Nigerian Exchange (NGX) equities segment lost more than N883 billion midweek as some investors begin to take early profit on some fine tickers. Some stockbrokers told MarketForces Africa in a chat that the reverse from the previous trend was supported by selling rallies on FBNH, Dangote Cement, and Nestle Nigeria among others.

Broadstreet market analysts and stockbrokers said in their updates that the Nigerian Exchange All-share index declined by 247 basis points to 64,046.93 points, starkly contrasting Tuesday’s robust performance at 65,669.29 points.

The local bourse recorded profit-taking activities on major stocks that have made a solid uptrend recently. According to Futureview Financial Services Limited, 63 stocks were the casualties of investor retreat.

On the last radar was DANGCEM with 9.63% price depreciation despite its share repurchase program. FBNH slumped by 10% amidst a shareholding brouhaha. NESTLE fell by 1.34%, a fallen angel FMCG stock that has been struggling to rejoin N1 trillion gang.  ACCESSCORP gave up 4.16% of its open market valuation and DANGSUGAR dipped 1.27%.

Given the significant market loss, year-to-date return moderated to 24.97%, just as market capitalization declined. Equities traders at Futureview told investors that the financial landscape saw investors bear the brunt of a staggering loss, amounting to a daunting N883.39 billion.

Meanwhile, data from the local bourse indicated that market activity for the day increased. The total volume traded increased by 37.7% to 1.16 billion units, valued at N12.69 billion, and exchanged in 13,878 deals.

UBA was the most traded stock in terms of volume, accounting for 15.30% of the total volume of trades, followed by JAPAULGOLD (9.49%), TRANSCORP (7.50%), FCMB (7.44%), and ACCESSCORP (5.63%) to complete the top 5 on the volume chart.

Also, UBA was also the most traded stock in value terms, with 19.25% of the total value of trades on the exchange.

Nigeria’s stock market report indicates that performance across sectors was broadly bearish, following losses in the Insurance (-5.4%), Industrial Goods (-5.4%), Banking (-2.6%), Consumer Goods (-0.8%), and Oil & Gas (-0.5%) indices.

As measured by market breadth, market sentiment was negative (0.2x) as 63 tickers lost relative to 11 gainers. VERITASKAP declined by 10.0% and ACADEMY dropped by 10.0%, to lead the most significant losses of the day. Meanwhile, DEAPCAP popped up by 10.0% and COURTVILLE jumped 10.0%, leading the gainers’ while 47 stocks closed flat.

Overall, the stock market capitalisation lost ₦883.39 billion, representing a drop of -2.47%, to close at ₦34,874.19 trillion from ₦35,757.58 trillion the previous day. #Nigerian Exchange Plunges by N883bn as Investors Book Profit Nigerian Treasury Bills Yield Rises to 7%