Nigeria Stocks At Four-month Low, Sheds N614 billion
Nigerian stocks at four-month low shedding N614 billion as it fell 2.3 per cent shedding N614.4 billion to a four-month low on Tuesday as sell pressure on the shares of Dangote Cement and MTN Nigeria weighed on the benchmark index, plunging it to its weakest level since 28 April.
Transaction volume fell by 33 per cent compared to previous session’s, while turnover similarly declined by 24 per cent.
Market breadth, an indicator of investors’ sentiment towards trade, closed negative as 16 laggards emerged, relative to 12 gainers. The remaining 83 participating stocks did not record price movement.
“This week, we expect the impact of the increased benchmark lending rate on equity markets to continue to take effect, returning to a bear market,” said analysts at investment bank United Capital in an outlook note.
“Investors are expected to continue cherry-picking stocks with solid underlying fundamentals.”
The all-share index dropped 1,139 basis points to close at 49,350.7, while market capitalisation eased to N26.6 trillion.
Year to date, the index is up by 15.5 per cent.