Emmanuel OchayiInvestors took profits from several key stocks, with Dangote Cement, Julius Berger, and Honeywell Flourmills leading the list of major laggards. At the close of trading, these stocks saw substantial declines, contributing to the overall market dip.
Stocks Suffering Major Losses
Honeywell Flourmills experienced a sharp decline, with its share price falling from N10.60 to N9.54, a loss of N1.06 or 10 percent. Similarly, Dangote Cement saw its share price decrease from N478.80 to N431, marking a loss of N47.80 or 9.98 percent. Julius Berger also recorded significant losses, with its share price dropping from N155.30 to N139.80, a decrease of N15.50 or 9.98 percent.
Join our WhatsApp ChannelThe Nigerian Exchange Limited (NGX) reported that the All-Share Index (ASI) and Market Capitalisation fell from the previous day’s 105,367.25 points and N64.251 trillion to 103,622.09 points and N63.187 trillion, respectively.
Analysts’ Predictions and Equity Market Sentiment
Analysts at Lagos-based Vetiva had forecasted mixed market sentiment ahead of Tuesday’s trading.
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They noted that “investors are capitalising on profits from previous session gainers while seeking attractive entry points in fundamentally sound names.” This strategy played out as predicted, with the market showing a cautious approach from investors.
Actively Traded Stocks
During Tuesday’s trading session, several stocks were actively traded. These included GTCO, Nigerian Breweries, Universal Insurance, AIICO, and Chams. Investors executed 13,052 deals, exchanging a total of 511,157,296 shares worth N12.758 billion.
This level of activity highlights the ongoing investor interest in the equity market, despite the recent downturn.
Impact of Equity Market on Year-to-Date Returns
The week’s negative performance of -1.73 percent has almost wiped out the positive returns for the year, which now stand at a modest +0.68 percent. This shift underscores the volatility and profit-taking tendencies that characterise the Nigerian equity market.
As the market reacts to these developments, analysts and investors alike will be closely monitoring future trading sessions to gauge the sustainability of these trends and identify potential recovery opportunities.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
