NSE Plunged as Sell-offs Hit High Cap Stocks

NSE Plunged as Sell-offs Hit High Cap Stocks

The Nigerian Stock Exchange (NSE) plunged strongly as sell-offs hit high cap stocks on Thursday in a renewed bearish trading session.

Today, stock market reversed the positive performance from the previous session as the NSE All-Share Index (ASI) fell 60 basis points (bps) to 38,697.17 points.

The profit-taking was due to sell-offs in DANGCEM (-3.5%), ZENITH (-1.4%), and NIGERIAN BREWERIES (-1.4%).

Consequently, year to date loss worsened to -3.9% and market capitalisation declined by ₦122.5 billion to ₦20.2 trillion.

Market report shows that trading activity waned as volume and value declined by 47.6% and 53.8% respectively to 169.4 million units and ₦2.1 billion.

The most traded stocks by volume were AIICO (19.7 million units), UBA (16.2 million units), and ZENITH (11.5 million units).

Meanwhile DANGCEM (₦550.8 million), SEPLAT (₦299.5 million), and GUARANTY (₦251.7 million) led by value.

Afrinvest said performance across sectors was mixed as 3 of the 6 indices under its coverage appreciated.

The Insurance index was the top gainer, up 0.7% due to bargain hunting in AIICO (+4.3%), NEM (+5.1%), and CHIPLC (+7.4%).

Similarly, the Consumer Goods and Banking indices rose 0.4% and 1bp respectively following price appreciation in INTBREW (+9.9%), CHAMPION (+9.1%), GUARANTY (+0.8%), and ETI (+3.0%).

Conversely, the Industrial Goods index was the lone laggard, down 1.7% due to sell-offs in DANGCEM (-3.5%), while Oil & Gas and AFR-ICT indices closed flat.

Investor sentiment as measured by market breadth strengthened to 2.0x from the 1.1x recorded previously as 22 stocks advanced against 11 decliners.

SMURFIT (+10.0%), INTBREW (+9.9%) and CHAMPION (+9.1%) were the top gainers while AFRINSURE (-8.3%), SOVRENINS (-7.1%) and MBENEFIT (-7.1%) were the top losers.

“We expect the equities market to close in the red for the week”, Afrinvest stated.

How to Use ₦10,000 to Buy Shares in Stock Market

NSE Plunged as Sell-offs Hit High Cap Stocks