Investors Pull Out N622bn from Stock Market After Tax Team Inauguration

By Dipo Olowookere

The bears consolidated their control of the Nigerian Exchange (NGX) Limited on Wednesday by 1.75 per cent following heavy selling pressure by investors.

This came a day after President Bola Tinubu inaugurated the Presidential Committee on Fiscal Policy and Tax Reforms headed by a tax guru, Mr Taiwo Oyedele, who resigned from PwC because of this job.

The team was given to mandate to increase the country’s tax base and raise the tax-to-GDP ratio to 18 per cent within three years.

At the close of business yesterday, the market capitalisation of the NGX depleted by N622 billion to N34.919 trillion from N35.541 trillion, and the All-Share Index (ASI) eased by 1,142.26 points to 64,167.39 points from 65,309.65 points.

The industrial goods sectors declined by 4.85 per cent, the banking sector shed 0.36 per cent, the consumer goods space lost 0.27 per cent, and the energy index dropped 0.19 per cent, while the insurance counter improved by 1.12 per cent.

At the midweek session, investors transacted 238.0 million shares valued at N2.6 billion in 6,001 deals compared with the 317.8 million shares valued at N4.5 billion in 6,376 deals on Tuesday, representing a decline in the trading volume, value, and the number of deals by 25.11 per cent, 42.22 per cent, and 5.88 per cent apiece.

Sterling Holdings topped the activity chart after it transacted 32.7 million units valued at N113.8 million, Fidelity Bank traded 21.1 million units worth N161.3 million, Universal Insurance traded 15.9 million units valued at N3.8 million, UBA sold 12.3 million units for N176.6 million, and Transcorp exchanged 9.8 million units valued at N36.0 million.

Business Post reports that investor sentiment was weak during the session as the bourse ended with 27 price losers and 24 price gainers, indicating a negative market breadth index.

Multiverse and NASCO were on top of the losers’ table on Wednesday after shedding 10.00 per cent each to sell at N3.15 and N36.90, respectively. John Holt lost 9.77 per cent to close at N1.20, Dangote Cement depreciated by 9.09 per cent to N320.00, and Universal Insurance went down by 8.33 per cent to 22 Kobo.

Leading the gainers’ chart were Guinea Insurance Nigeria and Omatek, which rose by 10.00 per cent each to settle at 33 Kobo and 33 Kobo apiece. Tantalizers gained 9.09 per cent to 36 Kobo, Abbey Mortgage Bank improved by 8.90 per cent to N1.59, and The Initiates grew by 8.86 per cent to 86 Kobo.