Nigerian equities market suffered another major sell-off on Wednesday as investors scrambled to raise cash ahead of the much-anticipated Initial Public Offering of Dangote Petroleum Refinery and Petrochemicals, wiping N1.67 trillion off the value of listed equities.
The renewed sell-off pushed the NGX All-Share Index down by 1.05 per cent to 242,223.10 points, while the market’s year-to-date return moderated to 55.66 per cent.
Similarly, total market capitalisation fell to N157.05 trillion, reflecting intensified selling across several heavyweight stocks and sectors.
ALSO READ: Vetiva leads Dangote Refinery’s N4.1bn-share IPO
The market’s breadth underscored the depth of the bearish sentiment, with 43 stocks closing lower against only 11 gainers, leaving the breadth ratio at a weak 0.26x.
Analysts attributed the pressure largely to portfolio repositioning ahead of the Dangote Refinery IPO, as investors increasingly seek to unlock cash from existing equity positions to participate in what is expected to be one of the biggest capital-market transactions in Nigeria.
The sell-off was broad-based, with Omatek Plc emerging as the biggest loser, followed by Zichis Agro-Allied, BUA Cement Plc, FTN Cocoa Processors Plc and Neimeth International Pharmaceuticals Plc.
On the other hand, Champion Breweries Plc, VFD Group Plc, UPDC Plc, Ikeja Hotel Plc and Cutix Plc recorded the strongest gains during the session.
The downturn was particularly severe in the financial and insurance segments.
The Insurance Index plunged 7.31 per cent, while the Banking Index shed 5.79 per cent. The Industrial Goods Index also declined by 3.72 per cent, while the Consumer Goods Index lost 1.61 per cent.
Only the Oil and Gas and Commodity sectors bucked the negative trend. The Oil and Gas Index rose by 5.55 per…
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Read Full Article by Kehinde Akinseinde-Jayeoba at tribuneonlineng.com
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