Equities Investors Lose N481bn to Market Correction

The equities investors registered the fourth consecutive selling rally associated with overpriced listed stocks in the Nigerian Exchange (NGX). Since the beginning of the week, the stock market has continued to depreciate in contrast to buying momentum in the fixed income market.

At the primary market auctions conducted by the debt office, demand came strong as rates on Naira assets spiked.  On Thursday, the Nigerian bourse closed negative as selloffs continued, reflecting investors’ weak buying sentiment as major stocks hit overbought.

Consequently, key performance indicators plunged, still stronger than the average inflation rate at the close of market today.  The Nigerian Exchange All-share index declined by 0.86% due to a raft of profit-taking activities across major market sectors, led by the Insurance sector, which dipped by -4.19%, followed by2.33% decline in the Banking index and others.

NGX data showed that the market index or All-Share Index decreased by 878.89 basis points today, representing a drop of -0.86% to close at 101,227.42 points.

However, market activities improved, stockbrokers at Atlass Portfolios Limited said in a report. Total volume and total value traded for the day increased by +39.91% and +11.97% respectively.

Citing data from the Nigerian Exchange, Atlass Portfolios Limited stated that approximately 478.38 million units valued at ₦7,172.36 million were transacted in 10,957 deals.

UNIVINSURE was the most traded stock in terms of volume, accounting for 9.04% of the total volume of trades. The Insurance stock was followed by TRANSCORP (8.78%), ZENITHBANK (6.71%), UBA (6.63%), and ACCESSCORP (6.59%) to complete the top 5 on the volume chart.

ZENITHBANK was the most traded stock in value terms, with 15.72% of the total value of trades on the exchange.  MEYER topped the advancers’ chart for today with a price appreciation of 9.97 per cent.

The company was followed by JULI with (+9.52%) growth, TANTALIZER (+4.76%), REDSTAREX (+4.05%), LASACO (+3.54%), GTCO (+1.91%), and LIVESTOCK (+0.53%).

Fifty-three stocks depreciated, where CONHALLPLC, STERLINGNG, NASCON, and UNITYBNK were the top losers, with a price depreciation of -10.00% each, as ETERNA (-9.95%), TRANSCORP (-9.45%), OANDO (-8.82%), DANGSUGAR (-8.61%), and INTBREW (8.33%) also dipped in price.

Today, the market breadth closed negative, recording 7 gainers and 53 losers. In contrast, the market sector performance was negative.

All the five major market sectors went down, led by the Insurance sector, which dipped by 4.19 %, followed by the Banking sector which lost -2.33% while the Consumer goods index shed 1.90%.  The Oil & Gas sector fell by 0.49% and the Industrial sector went down by 0.30%.

Overall, the equities market capitalisation of the Nigerian Exchange lost ₦480.77 billion to close at ₦55.39 trillion. #Equities Investors Lose N481bn to Market Correction#

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