Stocks Tumble as Nigerian Exchange Reverses Bullish Run

Stocks Tumble as Nigerian Exchange Reverses Bullish Run

Stocks tumble on Tuesday as Nigerian Exchange reverses bullish run as the monetary policy authority hold key rates. Due to the selloffs, the All-share index (NGX-ASI) dipped by 0.12 per cent as the benchmark index closed at 38,802.15 points.

The selling rallies saw investors’ fortune declining by N24.5 billion as market capitalisation declined to N20.216 trillion. Atlass Portfolios Limited analysts said price depreciation in bellwether stocks such as MTNN, UNILEVER, GTCO, UBA, ETI, UACN, NASCON, STERLNBANK, UNITYBNK, and WEMA dragged the bourse downward.

Consequently, after extended gains, market breadth turned negative with 17 gainers versus 19 losers.

Consequentially, market activities closed on a downward note with both the volume and value of stocks traded on the exchange declining by 1.41 per cent and 15.32 per cent respectively. A total of 243.08 million units of shares valued at N1.89 billion, were traded in 4,326 deals.

ACCESS led the volume chart, accounting for 8.98 per cent of the total volume of trades, followed by WEMA (8.78%) UPDC (6.00%) UACN (5.95%), and UBA (5.20%) to complete the top five on the volume chart.

MTNN led the value chart accounting for 11.63 per cent of the total value of trade on the exchange. OANDO, CHAMPION, FTNCOCOA topped the gainers’ chart, with their share prices advancing by 9.86 per cent, 9.00 per cent, and 8.89 per cent, respectively.

UNITY BANK led the losers’ table with its share price depreciating by 6.45 per cent to close at N0.58 after opening the day at N0.62. Afrinvest said performance across sectors under its coverage was mixed as 3 indices gained, 2 indices lost, while the Industrial Goods index closed flat.

Leading the gainers is the Oil & Gas index, up 2.0% amid buying interest in OANDO (+9.9%) and ARDOVA (+2.0%).

In the same vein, the Banking and Consumer Goods indices rose by 0.2% and 0.1% respectively, due to gains in STANBIC (+0.7%), ZENITH (+0.6%), CHAMPION (+9.0%), and DANGSUGAR (+2.2%).

On the flip side, the AFR-ICT and Insurance indices lost 0.7% and 3 basis points respectively, due to selling pressure on MTNN (-1.2%), SOVRENIN (-3.7%), and REGALINS (-2.2%).

“In the next trading session, we expect performance to be a mix of profit-taking and strategic positioning, as investors re-price market fundamentals amid fresh CBN forex policy on BDC”, Afrinvest.

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Stocks Tumble as Nigerian Exchange Reverses Bullish Run