BUA Cement, Cadbury Sell-Offs Drag Nigerian Exchange by N444bn

Sell-offs in major stocks, including BUA Cement (-4.76%), Cadbury (-9.92%), and Meyer (-9.91%), sent shockwaves through the Nigerian Exchange Limited (NGX) on Wednesday, wiping N444.32 billion off the market’s total capitalization. The negative trading pressure caused the benchmark NGX All-Share Index to fall by 0.48%, closing at 143,064.57 points.

Wednesday’s downturn marked a sharp reversal from Tuesday’s gains, which had added N94 billion to the market and ended a six-day losing streak. Analysts noted that investor caution and profit-taking in key consumer and industrial stocks were the main drivers of the sell-offs.

Despite the bearish trend, market breadth painted a more balanced picture. Out of all traded equities, 29 stocks gained compared to 27 losers, highlighting pockets of resilience. AIICO (+10%), NCR (+9.96%), and Ikeja Hotel (+9.41%) were the top performers, while Learn Africa (-10%), UPDC (-8.83%), and International Breweries (-8.33%) registered the steepest declines.

Trading activity improved considerably, with total volume rising 32.8% to 738.4 million units and total value surging 89.9% to N35.5 billion. Guaranty Trust Holding Company (GTCO) dominated both charts, trading 134.1 million units and N11.6 billion, accounting for 18% of volume and over 32% of trade value, underscoring its continued market influence.

Sectoral performance was mixed, reflecting investor selectivity. The Insurance Index (+2.66%), Banking Index (+0.24%), and Oil & Gas (+0.17%) recorded gains, while the Industrial (-2.03%) and Consumer Goods (-1.33%) indices suffered losses. The Commodity Index remained flat, leaving traders cautious but optimistic for selective opportunities in the days ahead.

source: punch