Stock Exchange Loses N191bn as Investor Sentiment Turns Bearish

By Dipo Olowookere

A weak investor sentiment triggered by profit-taking further sank the Nigerian Exchange (NGX) Limited by 0.32 per cent on Wednesday.

The stock exchange could not bounce back at midweek as a result of the sustained selling pressure influenced by the absence of a positive market stimulus.

As a result, the market capitalisation of the NGX deflated by N191 billion at the close of business to N58.905 trillion from N59.096 trillion, and the All-Share Index (ASI) declined by 336.82 points to 104,181.32 points from 104,518.14 points.

Losses were recorded in the financial services sector, with the banking index down by 2.36 per cent and the insurance index down by 2.07 per cent.

However, the consumer goods sector appreciated by 0.16 per cent and the industrial goods space rose by 0.01 per cent, while the energy sector closed flat.

The activity chart was in the red, as the trading volume, value, and the number of deals went down by 23.40 per cent, 37.76 per cent, and 18.69 per cent, respectively.

A total of 405.0 million equities worth N8.9 billion exchanged hands in 10,364 deals on Wednesday in 12,747 deals compared with the 528.7 million equities valued at N14.3 billion traded in 18.69 deals on Tuesday.

Business Post reports that International Energy Insurance and Caverton were the worst-performing stocks today as they shed 10.00 per cent each to trade at N1.44 and N1.62 apiece, Thomas Wyatt depreciated by 9.63 per cent to N1.97, NEM Insurance dropped 9.60 per cent to N8.95, and Tantalizers waned by 9.52 per cent to 38 Kobo.

On the flip side, University Press emerged as the best-performing equity during the trading day after it gained 9.84 per cent to quote at N2.68, SCOA Nigeria improved by 9.69 per cent to N2.15, Morison Industries expanded by 9.66 per cent to N1.93, Cutix grew by 9.62 per cent to N2.85, and Mutual Benefits appreciated by 9.38 per cent to 70 Kobo.

When trading activities closed for the session, the bourse recorded 32 depreciating shares and 21 appreciating shares, representing a negative market breadth index.