Bears Consolidate Control on NGX as Investors Sell for Cash

By Dipo Olowookere

The Nigerian Exchange (NGX) Limited further depreciated by 1.90 per cent on Wednesday amid sustained profit-taking by investors who are rebalancing their portfolios.

The banking space was the worst hit as it closed lower by 8.07 per cent, while the insurance index depreciated by 3.02 per cent, and the consumer goods sector fell by 1.82 per cent. The energy counter lost 1.81 per cent during the session and the industrial goods sector slumped by 0.39 per cent.

Consequently, the All-Share Index (ASI) contracted by 1,955.70 points to 101,154.45 points from 103,110.15 points, and the market capitalisation receded by N1.068 trillion to N55.358 trillion from N56.426 trillion.

The weak investor sentiment continued in the midweek trading day as the bourse closed with 57 depreciating stocks and 11 appreciating stocks, representing a negative market breadth index.

The quintet of UPDC, Zenith Bank, Royal Exchange, May & Baker, and Sterling Holdings dominated the losers’ chart yesterday after shedding 10.00 per cent each to close at N1.80, N35.10, 72 Kobo, N6.21, and N5.67.

On the flip side, Tripple Gee topped the gainers’ log after its share price rose by 9.97 per cent to N3.42, PZ Cussons also gained 9.97 per cent to trade at N33.10, Geregu Power improved by 9.69 per cent to N568.00, McNichols soared by 9.66 per cent to N1.59, and Veritas Kapital surged by 9.09 per cent to 60 Kobo.

Business Post reports that investors transacted 749.1 million shares worth N22.5 billion in 14,288 deals yesterday compared with the 649.0 million shares worth N11.1 billion traded a day earlier in 14,579 deals, indicating a decline in the number of deals by 2.00 per cent, and an increase in the trading volume and value by 15.42 per cent and 102.70 per cent, respectively.

Transcorp was the busiest equity on Wednesday after selling 79.7 million units valued at N1.1 billion, UBA traded 61.3 million units worth N1.6 billion, Zenith Bank sold 61.2 million units for N2.3 billion, GTCO exchanged 47.9 million units worth N1.8 billion, and Access Holdings transacted 43.5 million units valued at N1.1 billion.