Massive sell-off crash market indices by N256 billion

FOLLOWING massive sell off by investors at the Nigerian Stock Exchange (NSE), equity transactions closed the month of October on a downturn yesterday, as investors’ wealth dipped significantly by N256 billion.

Specifically, at the close of transactions yesterday, stock market investors engaged in a massive sell off due to panic and uncertainties that bedevilled the nation’s political space.

In summary, the All Share Index (ASI) shed 701.61 absolute points, representing a dip of 2.12 per cent to close at 32,466.27 points. Similarly, the market capitalisation shed N256 billion at N11.853 trillion.

The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are; Dangote Cement, Nigerian Breweries, Stanbic IBTC Holdings, Guinness Nigeria, and Presco.

Analysts at Investdata Consulting Limited, said: “Expect repositioning and short term profit-taking to continue as more companies present their numbers, amidst increased volatility, if the numbers beat market and analysts forecast. The ongoing Q3 earnings reports would assist investors and fund managers rebalance their portfolios, while watching the political space and analysing the actual numbers that will give insights into expectations for Q3 GDP and full year company earnings power.

“These are likely to drive prices north, or south, while determining market direction before or after the Presidential Election. “Investors should review their positions in line with investment goals, strength of the company numbers, and act as events unfold in the global and domestic environment.

“However, we would like to reiterate our advice that investors should go for equities with intrinsic value.”

Afrinvest Limited also said: “yesterday, we noticed sustained sell pressures on prior advancers, indicating investor profit-taking. We expect the bearish sentiment to remain elevated till close of the week, although we advise cautious optimism.” Market breadth closed negative with 15 gainers against 30 losers. Newrest ASL Nigeria, International Breweries, and Regency Alliance Insurance recorded the highest price gain of 10 per cent each, to close at N6.60, N33.55, and 22 kobo per share, respectively.

Linkage Assurance appreciated by 9.52 per cent to close at 69 kobo, while Jaiz Bank went up by 8.70 per cent to close at 50 kobo per share.