Stock Market Plummets by N132.4bn Amid Profit-taking in BUA Foods, Others

Kayode Tokede

The stock market of the Nigerian Exchange Limited (NGX) commenced the last trading week in November on a negative note, as investors bargain hunting in BUA Foods Plc (- 1.92 per cent to N198.90 per share) and 19 others, depreciated market capitalisation by N132.4billion.

Thus, the NGX All-Share Index rose by 123.33 basis points or 0.17 per cent to close at 71,353.81 basis points. while, the overall market capitalisation value shed N132.4 billion to close at N39.040 trillion as Union Bank of Nigeria (UBN) delist its shares from the Exchange.

Sectoral performance was mixed as the NGX Banking rose by 1.71 per cent and NGX Industrial added 0.01 per cent, while the NGX Consumer Goods dropped by 0.99per cent Elsewhere, the NGX Oil and Gas sectors closed flat.

Investor sentiment, as measured by market breadth remained positive as 32 stocks advanced, while 20 declined. FBNH, John Holt and Tantalizers recorded the highest price gain of 10 per cent each to close at N22.00, N1.87 and 55 kobo respectively, per share. Multiverse Mining and Exploration followed with a gain of 9.98 per cent to close at N6.39 and SUNU Assurance up by 9.73 per cent to close at N1.24, per share.

On the other hand, eTranzact International led the losers’ chart by 9.46 per cent to close at N6.70, per share. Unity Bank followed with a decline of 9.24 per cent to close at N1.67, while Omatek Ventures lost 9.09 per cent to close at 90 kobo, per share.

R.T. Briscoe Nigeria down by 8.96 per cent to close at 61 kobo, while Guinea Insurance declined by 5.88 per cent to close at 32 kobo, per share.

The total volume traded advanced by 28.1 per cent to 746.67 million units, valued at N5.95 billion, and exchanged in 9,267 deals. Transactions in the shares of Universal Insurance topped the activity chart with 161.098 million shares valued at N46.832 million. Access Holdings followed with 81.514 million shares worth N1.467 billion, while Unity Bank traded 67.653 million shares valued at N116.867 million.

Veritas Kapital Assurance traded 45.907 million shares valued at N17.760 million, while Transnational Corporations (Transcorp) transacted 44.468 million shares worth N294.096 million.

Looking into this week, United Capital Plc said “we project mixed sentiments toward listed corporates. We see the ASI looking to form a support between 69,215 points and 70,000 points. This is because we see some respite with the RSI currently trending above the overbought region, with some investors projected to continue booking some profit; albeit mild.

“On a broader note, we still see sustained buy interest toward the Banks and other fundamentally sound stocks with strong nine months, 2023 performance and pending corporate actions.”