Nigerian Stocks Crash 0.29% on Weak Investor Sentiment, Market Activity

By Dipo Olowookere

The bears pushed down the Nigerian Exchange (NGX) Limited by 0.29 per cent on Tuesday, as investors took profits.

The sell-off in Nigerian stocks was driven by weak investor sentiment, which resulted in Customs Street closing with 27 price gainers and 32 price losers, indicating a negative market breadth index and weak investor sentiment.

Sovereign Trust Insurance shed 9.92 per cent to close at N2.36, Unilever Nigeria crashed by 8.55 per cent to N100.50, Neimeth lost 6.02 per cent to trade at N7.80, University Press weakened by 6.00 per cent to N4.70, and International Breweries depreciated by 5.45 per cent to N9.55.

On the flip side, NPF Microfinance Bank and LivingTrust Mortgage Bank gained 10.00 per cent each to quote at N4.40 and N2.86, respectively. Coronation Insurance chalked up 9.95 per cent to close at N2.43, VFD Group grew by 9.84 per cent to N13.40, and ABC Transport expanded by 9.82 per cent to N6.15.

During the session, market participants traded 548.7 million stocks worth N34.3 billion in 47,301 deals versus the 1.0 billion stocks valued at N39.0 billion transacted in 61,517 deals a day earlier, representing a decline in the trading volume, value, and number of deals by 45.13 per cent, 12.05 per cent, and 23.11 per cent, respectively.

On Tuesday, GTCO led the activity log after it exchanged 88.7 million equities for N11.7 billion, UBA transacted 48.8 million shares worth N2.2 billion, Fidelity sold 45.6 million stocks valued at N1.0 billion, Access Holdings traded 41.8 million equities for N1.3 billion, and Zenith Bank sold 34.2 million worth N4.6 billion.

Yesterday, the insurance sector was up by 0.38 per cent, and the energy space closed flat, while the banking and industrial goods indices gave up 0.91 per cent, respectively, with the consumer goods segment losing 0.83 per cent.

Consequently, the All-Share Index (ASI) contracted by 653.64 points to 251,913.20 points from 252,566.84 points, and the market capitalisation moderated by N424 billion to N163.531 trillion from N163.955 trillion.