Market Down 1.47% as Investors Lose Confidence in Nigerian Stocks

By Dipo Olowookere

The Nigerian Exchange (NGX) Limited further declined by 0.47 per cent on Thursday as investors have started to lose confidence in Nigerian stocks due to news flying around about corporate governance issues in the parent company of the bourse.

Business Post reports that traders offloaded some blue-chip stocks in their portfolios, leading to weak investor sentiment as 14 equities closed in the losers’ chart while 10 stocks were on the gainers’ table.

Cornerstone Insurance lost 10.00 per cent to trade at 54 Kobo, Multiverse depreciated by 9.90 per cent to N2.82, Cadbury Nigeria fell by 9.62 per cent to N11.75, BUA Cement decreased by 6.18 per cent to N50.10, and Guinness Nigeria went down by 5.57 per cent to N83.00.

On the other hand, Trans-nationwide Express finished on top of the advancers’ table after its value went up by 8.70 per cent to 75 Kobo, NEM Insurance appreciated by 2.67 per cent to N5.39, Cutix grew by 2.50 per cent to N2.05, Academy Press inflated by 2.41 per cent to N1.70, with International Breweries rising by 2.02 per cent to N5.05.

During the session, investors traded 126.8 million shares worth N1.8 billion in 3,117 deals in contrast to the 51.9 million shares worth N590.0 million traded in 2,981 deals on Wednesday, representing an increase in the trading volume, value and number of deals by 144.51 per cent, 202.00 per cent and 4.56 per cent, respectively.

NGX Group was the most traded stock yesterday with the sale of 30.8 million units for N553.5 million, followed by Zenith Bank with the sale of 24.4 million units valued at N488.0 million. Fidelity Bank traded 13.8 million shares worth N50.7 million, FBN Holdings exchanged 11.0 million valued at N110.8 million, while Access Holdings sold 8.2 million equities worth N68.2 million.

The banking sector maintained its impressive performance yesterday, rising by 0.42 per cent. Still, it could not salvage the situation as the industrial goods, consumer goods, insurance and energy counters depreciated by 2.30 per cent, 0.36 per cent, 0.32 per cent and 0.20 per cent, respectively.

At the close of trades, the All-Share Index (ASI) decreased by 231.57 points to 49,190.34 points from 49,421.91 points as the market capitalisation went down by N125 billion to N26.533 trillion from N26.658 trillion.