How investors lost N153.6bn to sell-offs in blue-chip companies

Isola Moses | ConsumerConnect

Investors in the Nigerian Stock market have lost over N153.6billion of their investment, resulting from the sell-offs of blue-chip companies on the Nigerian Stock Exchange (NSE).

Accordingly, Vanguard reports that the sell-offs in blue-chip companies have dragged down the All-Share Index (ASI) by 1.1 percent to close at 22,773.20 points in the last week.

Specifically, Nestlé Nigeria Plc, a blue-chip company, declined by -10.0 percent followed by another blue chip, MTN Nigeria -1.7 percent  and Guaranty Trust Bank (GTB) -0.70.

Meanwhile, Year to Date, YtD return fell to 3.5 percent while Market Capitalisation, which represents the total worth of equities investment on the Exchange declined  by N153.6 billion to N14.5 trillion.

Activity level weakened as volume and value traded fell 34.1 percent and 69.9 percent  to 200.2million  units and N1.9 billion respectively.

The most active stocks by volume were First Bank Nigeria  Holding,  FBNH (35.9  million units), Transcorp (24.6 million units) and Zenith Bank (18.6million units) while MTN  Nigeria  (N462.3million ), Zenith  Bank (N369.1million) and Nestlé Nigeria  (N268.5million) led by value.

Sectorial performance showed that across all sectors were bearish as four of the six indices lost.

The Insurance Index  gained (0.9 percent ) and Industrial Goods Index  up  by  0.8 percent ) due to price appreciation  in Law Union Insurance went up by  8.1 percent , Prestige  Insurance 9.3 percent and BUA Cement 1.7 percent.

Conversely, the Consumer Goods Index dropped by -4.7percent owing to price weakness in Nestlé Nigeria which lost -10.0 percent and Vitafoam -7.7 percent.

The Banking Index dropped by -0.8 percent  and Oil & Gas  Index -0.6 percent on the back of losses in Guaranty Trust Bank (-0.7 percent ), First Bank Nigeria Holding -2.5 percent , Access Bank -1.5 percent and Oando -4.2 percent.

Similarly, losses in MTN Nigeria -1.7 percent dragged the AFR-ICT Index by 1.0 percent.

Investor sentiment as measured by market breadth improved as 17 stocks advanced relative to an equal 17 decliners.

Conversely, the best performers were Sovereign Insurance which garnered 10.0 percent, Transnational Express went up by 9.9 percent and NPF Microfinance 9.8 percent while Nestlé loss by -10.0 percent, Linkage Assurance -9.7 percent and May Baker -6.9 percent led the laggards.

The source quoted the analysts at Afrinvest Research as saying, “We believe earnings releases will dictate performance this week.

“However, we are not optimistic about the market,” the researchers opined.

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