Sentiment on the Nigerian Exchange Limited (NGX) has turned decidedly cautious as a wave of sustained profit-taking and broad market corrections erase N5.42 trillion from total equity value over the past 20 days.
After surging to a historic peak above N160 trillion late last month, the local bourse has faced persistent bearish pressure in August – shaving off roughly 3.38 percent as investors cash in on stellar mid-year gains and reposition amid shifting macroeconomic signals.
As of July 31, the market closed with a strong year-to-date (YtD) return of approximately 57.62 percent, while as of August 20, following the recent 20-day profit-taking and market correction, the YtD return moderated to approximately 54.73 percent. Nigeria’s listed equities value which peaked to N160.40 trillion as at July 31 decreased to N154.98 trillion at the close of trading on August 20.
During the 20-day August correction phase on the Nigerian Exchange, heavy selling pressure and profit-taking hit low-cap equities, insurance stocks, and specific heavyweight/oil & gas names hardest.
As of August 20, the month-to-date (MtD) decline of the NGX-All-Share Index (ASI) sits at approximately 2.14 percent, moving from around 245,283.69 points at the close of July to 240,037.80 points.
The primary decliners leading the downside during this period include International Energy Insurance. This stock frequently topped the daily losers’ board, dipping near its maximum daily loss limits (up to 10 percent in multiple sessions) as speculative buyers locked in…
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Read Full Article by Iheanyi Nwachukwu at businessday.ng
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