Nigerian Exchange Records Worst Day as Investors Lost N274 Billion

Nigerian Exchange Records Worst Day as Investors Lost N274 Billion

Listed Stocks on the Nigerian Exchange (NGX) records worst trading day as investors lost N274.2 billion on Wednesday due to profit-takings in banking stocks amidst yields repricing in the fixed income space.

The red market day comes as investors sustained bearish trade session on Tuesday.

Analysts said the benchmark index declined 1.3% to close at 38,781.48 points following losses in DANGCEM (-7.3%), INTBREW (-8.8%), and GUARANTY (-0.5%).

Consequently, year to date loss worsened to -3.7% while market capitalisation fell ₦274.2 billion to ₦20.3 trillion.

Trading activity improved as volume and value traded rose 2.8% and 7.7% to 259.5 million units and ₦1.9 billion respectively.

The most traded stocks by volume were FBNH (69.5 million units), TRANSCORP (36.7 million units) and ZENITH (16.6 million units).

Meanwhile FBNH (₦514.3 million), ZENITH (₦366.4 million) and NESTLE (₦170.1 million) led by value.

Bearish Sector Performance

Afrinvest said in a report that performance across sectors under its coverage was negative as 4 indicators lost.

However, the AFR-ICT index closed flat and the Oil & Gas index gained 2.0% following buying interest in SEPLAT (+3.6%).

The Insurance index led the laggards, down 1.6% due to profit taking in AIICO (-4.7%) and CUSTODIAN (-3.3%).

Also, the Banking and Consumer Goods indices declined 0.2% and 0.1% respectively on the back of sell-offs in GUARANTY (-0.5%), ACCESS (-1.3%), INTBREW (-8.8%), and GUINNESS (-5.8%).

In the same regard, the Industrial Goods index declined 3bps due to price depreciation in DANGCEM (-7.3%).

Investor Sentiment Wanes

Investor sentiment, as measured by market breadth, further weakened to 0.9x from the 1.4x recorded in the previous session as 19 stocks advanced while 22 declined.

CHIPLC (+10.0%), PORTPAINT (+8.3%) and ROYALEX (+7.1%) were the top gainers while FTNCOCOA (-10.0%), NEIMETH (-8.9%) and INTBREW (-8.8%) were the top decliners.

“In the next trading session, we expect the market to halt successive downtrends”, Afrinvest said.

Stock Market Halts Rally as Investors Lost N6.8 Billion

Nigerian Exchange Records Worst Day as Investors Lost N274 Billion