Nigeria’s equities market kicked off the month of August in red (-0.83percent) amid record sell off in stocks like BUA Cement, International Breweries, May & Baker and other top laggards.
The cement maker’s share price decreased most on the Nigerian Bouse by N6.90 or 9.96percent, after decreasing from N69.30 to N62.40. International Breweries followed after its share price dropped from N5.35 to N5, losing 35kobo or 6.54percent, and May & Baker which decreased from N3.58 to N3.35, losing 23kobo or 6.42percent.
Lagos-based United Capital research analysts had expected the market to see a rebound “as bargain hunting activities resume due to the low valuations in the market at the moment.”
Though they advised investors to continue to exercise caution “as we expect to see more volatility in the medium to long term as long as interest rates remain high.”
The market lost N227billion at the close of trading, thereby pushing record positive return year-to-date (YtD) to new low of 16.93percent.
The Nigerian Exchange Limited (NGX) All-Share Index (ASI) and Market Capitalisation decreased from preceding trading day’s 50,370.25 points and N27.163 trillion to 49,950.32 points and N26.936trillion.
“As expected, market started off mixed with a slight drawback in market sentiment, as the market could not sustain Friday’s positive close,” according to Vetiva market analysts. They also expect similar trading pattern on Tuesday, “as investors continue to trade cautiously given the current economic environment.”
GTCO, Zenith Bank, Access Holdings, FBN Holdings and UBA were top-5 traded stocks as investors in 4,965 deals exchanged 176,053,708 shares valued at N2.271billion.