Sell-offs knocked off ₦277.6bn from Market Capitalisation

Sell-offs knocked off ₦277.6bn from Market Capitalisation

Equities segment of the Nigerian Stock Exchange (NSE) witnessed a strong sell-offs that knocked off ₦277.6 billion from its market capitalisation on Tuesday.

Profit-taking in the domestic equities market persisted as sell-offs in bellwethers – DANGCEM (-6.5%), NESTLE (-3.5%) and NIGERIAN BREWERIES (-6.9%) – dragged the benchmark index lower by 1.6% to 34,242.83 points.

Consequently, investors lost ₦277.6 billion as market capitalisation declined to ₦17.9 trillion while year to date return moderated to 27.6%.

Activity level was mixed as volume traded rose by 25.8% to 840.8 million units while value traded declined by 22.8% to ₦6.1 billion.

The most traded stocks by volume were JAIZBANK (304.7m units), TRANSCORP (95.9m units) and FBNH (82.4m units) while ZENITH (₦1.2bn), GUARANTY (₦791.8m) and FBNH (₦613.8m) led by value.

Afrinvest said performance across sectors was bearish as 4 of the 6 indicators under the firm’s coverage closed southward.

The banking index was the lone gainer, up 0.8% following price appreciation in GUARANTY (+2.8%), ETI (+4.1%) and UBN (+1.8%).

On the flipside, the Industrial Goods, Consumer Goods and Oil & Gas indices lost 3.3%, 3.2% and 3.1% respectively.

This was due to profit-taking in DANGCEM (-6.5%), NESTLE (-3.5%) and OANDO (-10.0%).

Likewise, the Insurance and AFR-ICT indices declined 0.5% and 1bp respectively, driven by sell pressures in WAPIC (-10.0%) and CHAMS (-7.7%).

Investor sentiment as measured by market breadth rose to 0.6x from the 0.3x recorded previously as 17 stocks gained against the 30 that declined.

Read Also: Sell-Offs In Banking Stocks, Others Drag Nigeria’s Bourse Lower

BOCGAS (+10.0%), GLAXOSMITH (+9.6%) and CONOIL (+9.4%) led the top gainers.

Meanwhile OANDO (-10.0%), WAPIC (-10.0%) and PORTPAINT (-10.0%) led the decliners.

“We expect sell pressures to dominate the market this week”, Afrinvest stated.

Sell-offs knocked off ₦277.6bn from Market Capitalisation.

By Ogochi Ndubuisi