NGX Sheds 1.05% as Investors Liquidate Stocks Ahead of Dangote Refinery IPO

By Dipo Olowookere

The domestic equities market further depreciated by 1.05 per cent on Wednesday as investors prepare for the initial public offering (IPO) of Dangote Petroleum Refinery and Petrochemicals FZE commencing next Monday.

The bears took control of the Nigerian Exchange (NGX) Limited at midweek, with sell-offs across the major sectors of the bourse.

Yesterday, the industrial goods space shed 3.09 per cent, the insurance counter declined by 3.07 per cent, the consumer goods index fell by 2.09 per cent, the banking segment crashed by 0.53 per cent, and the energy sector slumped by 0.20 per cent.

As a result, the All-Share Index (ASI) contracted by 2,579.01 points to 242,223.10 points from 244,802.11 points, and the market capitalisation receded by N1.672 trillion to N157.050 trillion from N158.722 trillion.

The quintet of Omatek, Zichis, Japaul, FTN Cocoa, and McNichols led the losers’ chart after they lost 10.00 per cent each to close at N1.35, N15.39, N2.34, N7.65, and N4.50, respectively.

Conversely, Champion Breweries gained 9.90 per cent to finish at N11.10, VFD Group appreciated by 9.52 per cent to N11.50, UPDC rose by 5.88 per cent to N3.60, Ikeja Hotel expanded by 4.58 per cent to N44.50, and Cutix advanced by 3.06 per cent to N2.36.

A total of 534.5 million shares valued at N22.3 billion exchanged hands in 46,943 deals on Wednesday compared with the 753.2 million shares worth N27.8 billion traded in 54,051 deals on Tuesday, showing a decline in the trading volume, value, and number of deals by 29.04 per cent, 19.78 per cent, and 13.15 per cent, respectively.

The busiest stock for the day was Sterling Holdings, with a turnover of 78.1 million units for N582.2 million, Mutual Benefits transacted 75.5 million units valued at N216.0 million, Access Holdings exchanged 25.1 million units worth N674.2 million, Zenith Bank sold 22.1 million for N2.7 billion, and Chams traded 19.6 million units valued at N64.5 million.