Melissa Thompson
Fri, Sep 8, 2023 10:25 PM

Nigerian Stock Market Faces Decline as Indigenous Investors Take the Lead

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Nigerian Stock Market Faces Decline as Indigenous Investors Take the Lead
The Nigerian stock market experienced a decline as indigenous investors took over the market following the withdrawal of foreign investors. The market index fell by 0.3% due to heavyweights' inflated valuations and consecutive days of selloffs. Despite mixed market activities, the Industrial and Consumer Goods sectors suffered losses, while the Banking sector recorded a slight appreciation. MORISON emerged as the top loser, while BETAGLAS saw the highest price appreciation. Overall, market capitalization declined by N112 billion as indigenous investors dominated the Nigerian index.

The Nigerian stock market witnessed a decline on Thursday, losing approximately N112 billion, as indigenous investors took charge following the withdrawal of foreign investors. The domination of indigenous investors in the Nigerian Exchange (NGX) stocks market has led to a decline in market performance, with negative actions persistently affecting the benchmark index.

Heavyweights in the market, such as DANGCEM and NESTLE, experienced selloffs, attributing to the negative market breadth. The decline in market indices led to a year-to-date decrease of 0.30%, taking the Nigerian Exchange All-Share Index down by 204.17 basis points to close at 68,082.11 points.

Despite the overall decline, the market exhibited mixed activities. The total volume traded witnessed a slight decline of 0.15%, while the total value traded experienced an increase of 52.77%. In terms of volume, OANDO emerged as the most traded stock, followed by OMATEK, DANGSUGAR, FIDELITYBK, and ACCESSCORP. On the other hand, NESTLE took the lead in terms of value, accounting for 23.07% of the total value of trades.

Among the gainers, BETAGLAS saw the highest price appreciation with a 9.97% increase. Other gainers included CADBURY, CWG, TANTALIZER, GUINEAINS, and several others. Conversely, thirty stocks experienced depreciation, with MORISON being the biggest loser with a price depreciation of -9.89%.

The market sector performance remained negative, with four out of the five major market sectors experiencing declines. The Industrial sector suffered the most with a decline of 0.71%, followed by the Consumer Goods sector (-0.65%), the Oil & Gas sector (-0.12%), and the Insurance sector (-0.03%). The only sector that recorded a slight appreciation was the Banking sector, with a +0.10% change.

Overall, the decline in market performance resulted in a loss of N111.75 billion in equities market capitalization, representing a 0.30% decrease. The market closed at N37,261.82 trillion, compared to the previous day's close of N37,373.57 trillion.

The decline in the Nigerian stock market indicates the growing influence of indigenous investors. With foreign investors withdrawing from the market, indigenous investors are taking the lead and shaping market activities. As the market continues to face sell pressures and fluctuations, it remains to be seen how indigenous investors will navigate these challenges and drive market growth.

Source of content: OOO News 2023-09-08 News

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