The Nigerian stock market continued on its downward streak, declining by N225 billion as some investors intensified sell-off. Having peaked at N12.854 trillion middle of this month, profit-taking and portfolio realignment by foreign institutional investors and fund managers sent the market on a free-fall. And since the bears took control of the market, it has lost over N1.5 trillion as at Tuesday.
A total of N225 billion was wiped off the market value to close at N11.296 trillion while the Nigerian Stock Exchange (NSE) All-Share Index declined by 1.9 per cent to close at 37,751.40 Tuesday. An analysis of the performance of the market in the first two days of the week, indicated that the market capitalisation has dipped by N418 billion.
However, the chief executive officer of a wealth management fund, who spoke on the condition of anonymity, said the downward trend would not last long.
“It is true that the market has been sliding for the past two weeks due to profit taking and divestment by institutional investors. That was expected given the unprecedented rally the market witnessed in the last five months. However, I must also add that the current slide in prices is an opportunity for domestic investors to enter and consolidate their position in the market,” he said.
According to him, the current valuations of some of the blue chip stocks are attractive considering their fundamentals. He declared “this attractive valuation is bound to encourage more demand.”
Out of the 60 stocks that recorded price changes, 48 stocks were price losers while only 12 appreciated. Petroleum product marketing firm, Total Nigeria Plc led the price losers with N8.0 to close at N157.00 per share. Cadbury Nigeria Plc trailed with a decline of N5.00 to close at N50.00 per share. Nigerian Breweries Plc shed N4.99, while PZ Cussons Nigeria Plc shed N4.50.
On the positive side, Nestle Nigeria Plc led, appreciating by N2 to close at N993, trailed by Northern Nigeria Flour Mills Plc with a gain of N0.52.
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