Nigerian stocks shed N94.8 billion as investors’ risk aversion haunts market further
Nigerian stocks fell for the third day in a trot on Friday, with the benchmark index diminishing by 0.4 per cent or N94.8 billion, raising concerns around the ability of the market to shake off risk aversion from investors that has settled on trade for days.
That plunged the NGX 30, the index that tracks the movement of the top thirty companies by liquidity and market capitalisation on the 156-stock exchange, to its weakest level since 28th January.
Investors have been particularly risk averse to stocks since the apex bank’s took a hawkish stance in its monetary policy in July. Transaction volume dropped by one-tenth and turnover by nearly 40 per cent on Friday.
Earlier this week, investment bank United Capital said in its outlook note, “We expect the bear market to persist as the impact of the increased benchmark interest rate continues to weigh down equity markets.”
Sell-off in the shares of cement maker WAPCO and energy firm Ardova sparked off the decline, with the Industrial Index recording the worst performance of the five sector indexes tracked by the exchange.
Market breadth, which measures the extent of investors’ sentiment towards trade, was negative as 16 laggards were recorded compared to 13 gainers.
ALSO READ: Nigerian stocks scrape fragile rally as turnover drops
The all-share index eased 175.8 basis points to 49,370.6, while market capitalisation closed lower at N26.6 trillion.
Year to date, the index is up 15.6 per cent.
TOP FIVE GAINERS
Jaiz was the most profitable stock led, appreciating by 5.95 per cent to N0.89. AIICO went up by 3.64 per cent to N0.57. Academy rose to N2.08, notching up 1.96 per cent. Dangote Sugar added 1.88 per cent to end the trade at N16.30. UPDC REIT completed the top 5, climbing by 1.56 per cent to N3.25.
TOP FIVE LOSERS
UPL was the worst performing stock, dropping 9.95 per cent to close at N1.72. Industrial & Medical Gases shed 9.70 per cent to close at N7.45. Japaul Gold fell to N0.29, losing 9.38 per cent. Honeywell Flour slumped to N2.42, recording 8.33 per cent depreciation. Chams closed at N0.25, going down by 7.41 per cent.
TOP 5 TRADES
Altogether 132.2 million shares estimated at N1.6 billion were traded in 3,045 deals.
FBN Holdings was the most active stock for the second day running with 37.8 million units of its stocks worth N418.7 million traded in 112 deals. Access Holdings’s shares numbering 15.4 million and priced at N127.5 million exchanged hands in 217 transactions.
UBA had 9.3 million shares valued at N65.5 million traded in 143 deals. GTCO traded 8.9 million shares estimated at N181.2 million in 244 transactions. Zenith Bank traded 7.1 million shares valued at N155.1 million in 198 deals.
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Nigerian stocks fell for the third day in a trot on Friday, with the benchmark index diminishing by 0.4 per cent or N94.8 billion, raising concerns around the ability of the market to shake off risk aversion from investors that has settled on trade for days.
That plunged the NGX 30, the index that tracks the movement of the top thirty companies by liquidity and market capitalisation on the 156-stock exchange, to its weakest level since 28th January.
Investors have been particularly risk averse to stocks since the apex bank’s took a hawkish stance in its monetary policy in July. Transaction volume dropped by one-tenth and turnover by nearly 40 per cent on Friday.
Earlier this week, investment bank United Capital said in its outlook note, “We expect the bear market to persist as the impact of the increased benchmark interest rate continues to weigh down equity markets.”
Sell-off in the shares of cement maker WAPCO and energy firm Ardova sparked off the decline, with the Industrial Index recording the worst performance of the five sector indexes tracked by the exchange.
Market breadth, which measures the extent of investors’ sentiment towards trade, was negative as 16 laggards were recorded compared to 13 gainers.
ALSO READ: Nigerian stocks scrape fragile rally as turnover drops
The all-share index eased 175.8 basis points to 49,370.6, while market capitalisation closed lower at N26.6 trillion.
Year to date, the index is up 15.6 per cent.
TOP FIVE GAINERS
Jaiz was the most profitable stock led, appreciating by 5.95 per cent to N0.89. AIICO went up by 3.64 per cent to N0.57. Academy rose to N2.08, notching up 1.96 per cent. Dangote Sugar added 1.88 per cent to end the trade at N16.30. UPDC REIT completed the top 5, climbing by 1.56 per cent to N3.25.
TOP FIVE LOSERS
UPL was the worst performing stock, dropping 9.95 per cent to close at N1.72. Industrial & Medical Gases shed 9.70 per cent to close at N7.45. Japaul Gold fell to N0.29, losing 9.38 per cent. Honeywell Flour slumped to N2.42, recording 8.33 per cent depreciation. Chams closed at N0.25, going down by 7.41 per cent.
TOP 5 TRADES
Altogether 132.2 million shares estimated at N1.6 billion were traded in 3,045 deals.
FBN Holdings was the most active stock for the second day running with 37.8 million units of its stocks worth N418.7 million traded in 112 deals. Access Holdings’s shares numbering 15.4 million and priced at N127.5 million exchanged hands in 217 transactions.
UBA had 9.3 million shares valued at N65.5 million traded in 143 deals. GTCO traded 8.9 million shares estimated at N181.2 million in 244 transactions. Zenith Bank traded 7.1 million shares valued at N155.1 million in 198 deals.
Support PREMIUM TIMES’ journalism of integrity and credibility
Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.
For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.
By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.
Donate
TEXT AD: Call Willie – +2348098788999
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