Nigeria’s stock market closed in the red for the first time since the suspension of former Governor of the Central Bank of Nigeria, Godwin Emefiele, as investors decided to cash in on their gains following a recent two-day rally.
The downturn saw several prominent companies, including Access Corporation and Cornerstone Insurance, grappling with declining share values.
Access Corporation, one of the most actively traded stocks, faced a significant sell-off, causing its share price to plummet by N1.45 or 9.24 percent from N15.70 to N14.25. Similarly, Cornerstone Insurance suffered a substantial setback, with its share price dropping from N1.13 to N1.02, representing a decline of 11 kobo or 9.73 percent.
Thursday’s dip marked a missed opportunity for investors to consolidate the previous rally, which was primarily fueled by Emefiele’s suspension and the Central Bank of Nigeria’s decision to float the naira.
Despite the market’s recent positive momentum, the downward trend on Thursday impacted the Nigerian Exchange Limited All-Share Index and equities Market Capitalisation, causing them to decline from 59,985.10 points and N32.662tn, respectively, on Wednesday to 59,195.21 points and N32.232tn on Thursday.
The trading activities on Thursday witnessed investors exchanging 1,170,151,738 units valued at N15.359bn in 12,611 deals, reflecting a decline when compared to the previous day’s trading session.
This downturn came just a day after banks led the top gainers on Wednesday, a development analysts attributed to critical economic decisions made by the Bola Tinubu administration. Wednesday’s trading session saw the All-Share Index rise by 3.99 percent, closing at 59,985.10 index points, up from 58,163.55 index points recorded in the previous day’s session.
The market capitalisation also experienced an impressive appreciation, gaining N992bn and closing at N32.662tn, representing a 3.13 percent increase compared to the previous trading session’s N31.670tn.
International Breweries took the lead among gainers with a 10.00 percent increase, while Pharm Deko suffered a significant decline of -9.65 percent, leading the pack of losers.
UBA Plc emerged as the most traded equity by volume at the end of Wednesday’s session. Other notable gainers included Sterling, Transcohot, Dangote Sugar, and First Bank Nigeria Holdings, all achieving a 10 percent increase.
The market’s recent roller-coaster ride demonstrates the influence of both economic decisions and investor sentiment on Nigeria’s stock market. As the country navigates through economic shifts and policy changes, investors and analysts will closely monitor future market trends to make informed investment decisions.
Bearish Sentiment Persists: Investors Lose N112 Billion on NGX
Nigerian Stock Market Dips as Weak Momentum Drains N39 Billion from Investors
Dr. Yemi Cardoso’s Nomination Boosts Confidence as Stock Investors Gained N264 Billion
The bullish momentum in the Nigerian Exchange Limited continued on Tuesday as investors pocketed N264 billion in profit following Monday’s gains of N263 billion.
Both the market capitalization and the All-Share Index, which gauge the movement of share prices for all listed companies surged by 0.71 percent to N37.413 trillion and 68,359.22 points, respectively.
This optimistic trading trend emerges as investors increasingly show confidence in the local market and the broader economy, fueled in part by the news of Dr. Yemi Cardoso’s nomination as the Governor of the Central Bank of Nigeria.
As Tuesday’s session drew to a close, the volume of shares traded experienced a significant uptick of 31.33 percent to 676.74 million. However, the number of deals declined by 8.35 percent to 7,659 while the total trade value decreased by 33.97 percent to N5.89 billion.
Market sentiments also leaned towards the bullish side, with 36 gainers outpacing the 27 losers.
Among the top-performing stocks that caught the attention of investors were:
- Berger Paints Plc, which surged by 9.95 percent to conclude the trading day at N11.60.
- Oando Plc, which recently released its audited results for 2021, saw a 9.92 percent increase, closing at N13.30.
- BUA Foods, which gained 6.32 percent to close at N196.70.
- PZ’s shares appreciated by 1.45 percent per unit, ending at N20.
- GTCO Plc stock increased in value by 0.43 percent, closing at N35.40.
On the flip side, the top losers included:
- SCOA Plc, witnessing a 10 percent depreciation in its shares, closing at N1.24.
- Unilever’s shares recorded an 8.28 percent drop, concluding at N13.30.
- United Bank for Africa Plc, which lost 1.96 percent in share value, closing at N17.50.
- FBN Holdings Plc, suffering a 1.69 percent decline, closing at N17.40.
- Accesscorp’s shares depreciated by 0.29 percent, closing trading at N17.40.
The Nigerian Exchange continues to display its resilience and attractiveness to investors, making it an exciting space to watch for potential opportunities and market trends.
News4 weeks ago
Npower Program Restores Hope with Long-Awaited Stipend Disbursement
Commodities4 weeks ago
Three Chinese Groups Vying to Acquire $2 Billion Botswana Copper Mine
News3 weeks ago
Government Plans to Revamp Npower Scheme and Combat Poverty
Banking Sector4 weeks ago
Guaranty Trust Holding Co. Surpasses Expectations with $468 Million Forex Windfall
Forex3 weeks ago
Black Market Dollar to Naira Today, September 7th, 2023
Government4 weeks ago
French Influence Wanes in Africa: Is Macron’s Africa Policy Doomed?
Black Market Rate4 weeks ago
Dollar to Naira Black Market Today, 2nd September 2023
Cryptocurrency4 weeks ago
Ripple Labs Objects to SEC’s Request for Appeal in Landmark Cryptocurrency Case