Panic sell off continued on the Nigerian Stock Exchange on Tuesday with the market capitalisation shedding N656 billion in what an expert attributed to fear of naira devaluation.
Thus, the Month-to-Date and Year-to-Date losses increased to -7.0 per cent and -9.1 per cent, respectively. He added that 10 per cent loss by MTN Nigeria Communications which controlled 15 per cent of the total market capitalisation, contributed to huge loss by market indices. “The dwindling confidence and low liquidity in equity segment, despite the impressive high dividend yields, showed that something is wrong with the companies, corporate governance and the economy,” Mr Omordion said.“For discerning and intelligent investors, this is purely transfer of wealth for those that will take stage by stage positioning ahead of dividend qualification dates,” Mr Omordion added.
Union Bank of Nigeria, Nigerian Breweries, Guaranty Trust Bank, International Breweries and CAP followed with a decline of 9.93 per cent each, to close at N6.35, N33.10, N19.95, N6.35 and N19.95 per share, respectively. Honeywell Flour Mill followed with 3.45 per cent to close at 90k, while NEM Insurance increased by 1.16 per cent to close N1.75 per share.