By Adedapo Adesanya
The unlisted securities market in Nigeria, the NASD Over-the-Counter (OTC) Securities Exchange, plunged on Thursday, January 28 on the back of heavy negative price movement in the shares of FrieslandCampina WAMCO Nigeria Plc.
Business Post reports that at the close of transactions yesterday, the market for unlisted stocks went down by 2.17 per cent due to the selloff in the company.
The NASD Unlisted Security Index (NSI) depreciated by 16.13 points to close at 727.23 points versus the previous day’s 743.36 points, while the market capitalisation reduced by N11.58 billion to settle at N521.80 billion compared with N533.38 billion it ended the previous session.
As earlier stated, this contraction came from the offloading of FrieslandCampina stocks by investors, which crashed the price by N11.86 or 8.9 per cent to N121.14 per unit as against N133.00 per unit it sold at the previous session.
On the activity chart, there was a surge in the volume of transactions by 2,299.4 per cent as 1.1 million units of securities were exchanged on Thursday compared to the 45,783 units of securities transacted on Wednesday.
Also, the value of the trades recorded yesterday significantly jumped by 2,557.9 per cent to N133.1 million from N5.0 million of the preceding day.
In addition, there was a rise in the total number of deals executed by traders at the market by 100 per cent as a result of the 10 deals recorded in contrast to the five deals executed on Wednesday and all the deals were carried out on FrieslandCampina.
At the close of business, UBN Property Plc remained as the most traded stock by volume (year-to-date) with the sale of 15.1 million units of its shares worth N16.3 million. FrieslandCampina was in second place with 1.8 million units traded at N222.2 million, while Central Securities Clearing Systems (CSCS) Plc occupied the third spot with 1.8 million units traded at N22.2 million.
In terms of the value of trades (year-to-date), FrieslandCampina was at the zenith for trading 1.8 million shares worth N222.2 million. Niger Delta Exploration & Production (NDEP) Plc came trailed with 247,954 units of securities exchanged for N86.2 million, while CSCS Plc has traded 1.8 million securities valued at N22.2 million.
Modupe Gbadeyanka