Nigerian stocks plunge deeper on investors’ waning risk appetite

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MTNN, Nigeria’s biggest public company by revenue, together with FBN Holdings and Zenith steered the fall.

Nigerian stocks on Wednesday saw the intensity at which they fell at the last trading session reach a stronger pitch, with benchmark index dropping by 0.34 per cent amid investor’s evaporating interest in equities as yuletide edges near, deepening fears that shares may close the year with a pretty low single-digit yield.

Stocks have returned 4.9 per cent January to date, well behind the 50 per cent they delivered last year, when Bloomberg ranked the Nigerian equities marketMTNN, Nigeria’s biggest public company by revenue, together withand Zenith steered the fall, which occurred simultaneously with a decline in volume by 19 per cent.

Market watchers at broker and investment bank United Capital said in a Monday note investors are likely to dominantly take profit this week “in the absence of major catalysts.” With 17 advancers reported in contrast to 14 declining stocks, market breadth, which is used to determine the extent of investors sentiment to trade, closed on a positive note.

The all-share index eased by 144.35 basis points to 42,244.22, while market capitalisation closed lower at N22.06 trillion.May & Baker led gainers, appreciating by 10 per cent to close at N4.51. Cutix added 10 per cent to end the day’s trade at N2.64. UPDC advanced by 7.76 per cent to N1.25. Consolidated Hallmark rose to N0.62, notching up 5.08 per cent in the process. Chams completed the top 5, climbing up by 5 per cent to N0.21.Royal Exchange topped the losers’ chart, declining by 6.

 

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