Nigerian Exchange Sinks as Investors Sustain Selloffs

Nigerian Exchange Sinks as Investors Sustain Selloffs

Nigerian Exchange (NGX) sinks as investors switch to selloff mood, resulting in price depreciation in 27 stocks. Investors lost N55.79 billion today in addition to a value decline on Monday.

This worsened stock market year to date losses to 2.6% while month to date returns slow down to 1.7%. Today’s market data shows that the bearish sentiment was driven by price waning in some large and medium capitalized stocks.

Consequently, the Nigerian Exchange All-share index shed 107.06 basis points, representing a 0.27 per cent to close at 39,219.61. Also, equity market capitalisation declined ₦55.79 billion to ₦20.43 trillion.

Despite the selloffs, market activities were bullish, as the total volume and value traded appreciated by 41.41 per cent and 28.13 per cent.  A total of 425.66 million units of shares valued at ₦1.97 billion were traded in 4,553 deals.

TRANSCORP led the volume chart, accounting for 20.09 per cent of the total volume of trades, trailed by CHAMS (13.52%), HONYFLOUR (7.43%), CHAMPION (5.58%), and FIDELITYBK (4.85%) to complete the top five on the volume chart.

Meanwhile, ZENITH BANK led the value chart with 12.38 per cent of the total value of trade on the exchange.

TRANSCOHOT led the advancers’ table with price appreciation of 10.00 per cent, followed by HONYFLOUR (9.74%), CHIPLC (5.00%), ETERNA (3.45%), ACCESS (1.11%), UBA (0.66%) and ten others.

On the other hand, NB led the decliners’ table as its share price declined by 9.93 per cent to close at ₦49.45, as WEMABANK (-4.44%), OANDO (-2.85%), FIDELITYBK (-1.67%), ZENITH BANK (-1.03%), DANGSUGAR (-0.83%), GTCO (-0.55%) and FLOURMILL (-0.52%) amongst others also decline in price.

Read Also: Treasury Rate Swells on Investors Selloffs amid Liquidity Pressure

Following the decline of many fundamentally viable stocks and expectation of the interim financial reports of the remaining tier-1 banks, Atlass Portfolios analysts anticipate the market should upturn the two-day negative sentiment.

In a market report, Afrinvest said performance across sectors under its coverage, performance was bearish as 4 indices closed in the red while the Industrial Goods and AFR-ICT index was flat.

The Consumer Goods index led laggards, down 1.9% due to sell-offs In DANGSUGAR (-0.8%), FLOURMILL (-0.5%), and INTBREW (-1.1%).

Similarly, the Oil & Gas and Banking indices fell 0.4% apiece, on account of price depreciation in OANDO (-2.9%), ZENITH (-1.0%), and WEMABANK (-4.4%). Finally, profit-taking in AIICO (-3.9%) and WAPIC (-3.9%) dragged the Insurance index lower by 0.3%.

“We expect market performance to tilt in the bearish direction, as investors continue to search for optimum return”, analysts projected.

Nigerian Exchange Sinks as Investors Sustain Selloffs