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Stock Market Down N50.64bn on Profit-taking in Nestle, 24 Others
![Stock Market Down N50.64bn on Profit-taking in Nestle, 24 Others](https://global.ariseplay.com/amg/www.thisdaylive.com/uploads/NGX.png)
Kayode Tokede
Investors’ profit-taking in Nestle Nigeria Plc, Dangote Sugar Refinery Plc, and 23 others, yesterday depreciated the stock market segment of the Nigerian Exchange Limited (NGX) by N50.64 billion in market capitalisation.
As Nestle Nigeria dropped by 10per cent to close at N990 per share, Dangote Sugar Refinery depreciated by 7.69per cent to close to N60per share, the NGX All-Share Index dropped to 101,995.53basis points, representing a decline of 0.09per cent or 92.77 basis points from 102,088.30 basis points the stock market opened for trading.
Consequently, the overall market capitalization dropped to N55.811 trillion yesterday, a decline of N50.64 billion from N55.861 trillion the market opened for trading this new week.
As measured by market breadth, market sentiment was positive as 28 stocks gained relative to 25 losers. NASCON Allied Industries recorded the highest price gain of 10 per cent to close at N66.00, per share. Juli followed with a gain of 9.83 per cent to close at N2.57, while FBNH Holdings (FBNH) rose by 9.68 per cent to close at N34.00, per share.
Wapic Insurance rose by 8.96 per cent to close at 73 kobo, while DAAR Communications up by 8.86 per cent to close at 86 kobo, per share.
On the other hand, Nestle Nigeria led the losers’ chart by 10 per cent, to close at N990.00, per share. Eterna followed with a decline of 9.97 per cent to close at N15.80, while Fidson Healthcare declined by 9.82 per cent to close at N15.15, per share.
CWG depreciated by 9.56 per cent to close at N6.15, while SUNU Assurance declined by 9.09 per cent to close at N1.90, per share.
The total volume traded advanced by 1.14 per cent to 294.325 million units, valued at N6.723 billion, and exchanged in 9,957 deals. Transactions in the shares of FBNH topped the activity chart with 73.835 million shares valued at N2.416 billion. United Bank for Africa (UBA) followed with 20.670 million shares worth N493.051 million, while Zenith Bank traded 20.625 million shares valued at N731.406 million.
Fidelity Bank traded 19.982 million shares valued at N205.396 million, while Veritas Kapital Assurance sold 12.320 million shares worth N8.965 million.
On the stock market trading this week, analysts at United Capital Plc, said ‘we anticipate the bearish sentiments amongst investors to persist in the local equities market given the recent developments in the fixed-income market. The impact of the high yields in the fixed-income market will continue to drive sell-offs as investors switch their asset classes to less risky assets.
“Other headwinds to the equities market are the uncertainties surrounding interest rate decision and the possible ‘HIKE’ in Monetary Policy Rate (MPR) by the Monetary Policy Committee (MPC) at their meeting scheduled for the 26th and 27th February, 2024.”