On Thursday, the Nigerian Exchange (NGX) lost more over N296 billion as a result of a deterioration in market sentiment. Market capitalization plummeted as local stock exchange investors cashed in on firms whose stocks had earlier seen sharp increases.
After the local bourse’s market capitalization surpassed N38 trillion earlier this week and expanded by more over N1 trillion, investors made rapid profits today. The exchange witnessed a negative shift in purchasing sentiment today, which pulled stock market performance indicators down by -0.76%.
Data from the local bourse indicated that profit-taking in FBNH, MTNN, BUACEMENT, and other stocks was the cause of this. This week has seen a notable rally in these equities. Despite surpassing the 26.72% annual inflation rate, the year-to-date return experienced a decline to 36.67% due to profit-taking on previously rallied stock in the local bourse.
Following the selloffs, the All Share Index, which measures the market index, fell by 539.48 basis points, or -0.76%, to settle at 70,042.28.
Stockbrokers said in a separate report that there was a sharp decline in market activity, with total volume and total value exchanged dropping by -12.68% and +44.73%, respectively. In its market report, Atlass Portfolios Limited informed investors that 8,396 trades totaling about 525.46 million units at ₦6,088.51 million were completed.
With 17.59% of the overall trade volume, JAPAULGOLD was the most traded stock in terms of volume. To round out the top 5 on the volume table, the corporation was followed by FIDELITYBK (12.81%), UBA (8.85%), FCMB (8.15%), and CHAMS (5.92%).
UBA was the most traded stock in value terms, with 15.99% of the total value of trades on the exchange. OMATEK topped the advancers’ chart with a price appreciation of 10.00 per cent.
The stock was trailed by ACADEMY (9.83%), PRESTIGE (+9.76%), TANTALIZER (+9.76%), DAARCOMM (+8.70%), and twenty others.
Twenty-eight stocks depreciated, according to data from the Nigerian bourse. CHAMS was the top loser, with a price depreciation of -9.84%. Other stocks on the losers chart include INTBREW (-8.79%), FBNH (-8.14%), UNITYBNK (-6.93%), ACCESSCORP (-2.79%), and BUACEMENT (-1.87%).
Given the trading pattern seen during an intraday session, the market breadth closed negative, recording 25 gainers and 28 losers. Likewise, the market sector performance was negative.
Trading results showed that three out of the five major market sectors went down. The Banking sector shed 0.85%, followed by a 0.65% decline recorded by the Industrial sector.
The Consumer goods index backpedalled by 0.91%. While the Insurance sector grew by +1.56%, the Oil and Gas sector closed flat. Overall, equities market capitalisation lost ₦296.39 billion, representing a decline of -0.76%, to close at ₦38.48 trillion from ₦38.78 trillion the previous day.
