Selling Pressure Plunges Nigerian Exchange by 0.65%

By Dipo Olowookere

Investors continued profit-taking activities on the floor of the Nigerian Exchange (NGX) Limited following the disappointing earnings from companies trading their stocks on the bourse.

Some of the big names at the stock market posted unimpressive half-year results, triggered by the impact of the foreign exchange (FX) liberalisation by the Central Bank of Nigeria (CBN) in the second quarter of the year.

From the results released so far, companies complained about how the devaluation of the Naira affected their financial performance, forcing traders to embark on a selling spree, depleting the NGX by 0.65 per cent on Friday.

Apart from the energy counter, which closed flat, every other sector was in red yesterday, with the insurance index losing 1.83 per cent, the consumer goods space crashing by 1.27 per cent, the banking sector going down by 1.26 per cent, and the industrial goods dropping 0.19 per cent.

Consequently, the All-Share Index (ASI) closed lower by 426.52 points to 65,056.39 points from 65,482.91 points, as the market capitalisation declined by N232 billion to N35.403 trillion from N35.635 trillion.

At the trading day, investors transacted 459.8 million shares worth N5.4 billion in 8,051 deals compared with the 509.3 million shares worth N4.8 billion transacted in 8,070 deals on Thursday, representing an increase in the trading value by 12.5 per cent and a decline in the trading volume and the number of deals by 9.72 per cent and 0.24 per cent apiece.

The market breadth index was negative yesterday as the bourse finished with 38 price losers and 21 price gainers, indicating a weak investor sentiment.

Guinness Nigeria and Chams posted the biggest losses on Friday, going down by 10.00 per cent each to N66.60 and 99 Kobo apiece. John Holt lost 9.84 per cent to settle at N2.20, Cadbury Nigeria fell by 9.78 per cent to N12.45, and GlaxoSmithKline shed 9.76 per cent to N7.40.

On the flip side, Courteville appreciated by 10.00 per cent to 66 Kobo, Abbey Mortgage Bank increased by 8.91 per cent to N1.10, Omatek rose by 8.89 per cent to 49 Kobo, Regency Alliance improved by 8.11 per cent to 40 Kobo, and NASCON grew by 7.78 per cent to N36.00.