The decision of traders to convert their stocks to cash has continued to hurt the Nigerian Exchange (NGX) Limited as it further dropped 0.87 per cent on Thursday, the third straight loss it was recording this week.
It was observed that most market participants tilted towards profit-taking to minimise their exposure to Nigerian equities, which have been on steroid for a long time, breaking every ceilings to reach new highs.
Yesterday, Customs Street had its tail between its legs due to the selling pressure, resulting in some key sectors closing in red, though the banking industry gained 0.47 per cent.
The insurance counter lost 4.69 per cent, the industrial goods index depreciated by 4.04 per cent, the energy space slumped by 0.06 per cent, and the consumer goods sectors fell by 0.04 per cent, while the commodity industry closed flat.
When the closing gong was struck to signify an end to the business day, the All-Share Index (ASI) was down by 1,233.86 points to 140,332.44 points from 141,566.30 points and the market capitalisation decreased by N781 billion to N88.784 trillion from N89.565 trillion.
The quartet of University Press, Thomas Wyatt, International Energy Insurance, and Veritas Kapital lost 10.00 per cent each to trade at N6.30, N3.33, N3.24, and N1.80, respectively, while BUA Cement crashed by 9.96 per cent to N151.80.
On the flip side, SFS REIT gained 9.99 per cent to sell for N274.15, Jaiz Bank appreciated by 9.75 per cent to N4.39, Secure Electronic Technology increased by 9.38 per cent to N1.05, Omatek grew by 5.88 per cent to N1.44, and Chams improved by 5.00 per cent to N2.73.
Business Post reports that a total of 17 stocks ended on the gainers’ table and 45 stocks finished on the losers’ log, implying a negative market breadth index and weak investor sentiment.
Data from the activity chart showed that 573.8 million equities worth N12.9 billion exchanged hands in 25,881 deals during the session compared with 721.8 million equities valued at N12.9 billion traded in 28,745 deals at midweek, showing a decline in the trading volume and number of deals by 2050 per cent and 9.96 per cent, respectively, as the trading value was flat.
Fidelity Bank was the most active stock for the session after transacting 96.1 million units worth N2.0 billion, Veritas Kapital sold 36.6 million units for N66.2 million, Universial Insurance exchanged 32.9 million units valued at N37.0 million, Access Holdings traded 30.3 million units worth N819.1 million, and Jaiz Bank recorded the sale of 21.2 million units valued at N92.1 million.