Stock Market Down N800bn on Losses in BUA Foods, Nestle

Kayode Tokede 

The Nigerian stock market took a pause to its recent gains, closing lower as the overall capitalization declined by N800 billion on losses in BUA Foods (10 per cent),  Nestle Nigerian Plc (-10.0per cent),  and 25 others. 

The Nigerian Exchange Limited  All-Share Index (NGX ASI)  dipped by 1,241.19 basis points or 0.50 per cent, to close at 245,418.37 basis points. Similarly, the overall market capitalisation value shed N800 billion to close at N158.319 trillion.

Sectoral performance was mixed as the Consumer Goods (-5.0per cent) index declined, while the Insurance (+1.6per cent), Banking (+1.5per cent) and Industrial Goods (+0.8per cent) indices advanced. The Oil & Gas index closed flat.

Investor sentiment was positive as 37 advancers outpaced 27 decliners. Cadbury Nigeria, Trans-Nationwide Express and Unilever Nigeria recorded the highest price gain of 10 per cent each to close at N62.70, N3.08 and N137.50 respectively, per share. Thomas Wyatt Nigeria followed with a gain of 9.95 per cent to close at N4.09, while NASCON Allied Industries rose by 8.89 per cent to close at N196.00, per share.

On the other hand, Nestle Nigeria and BUA Foods led the losers’ chart by 10 per cent each to close at N2,812.50 and N845.10 respectively, while MeCure Industries followed with a decline of 9.94 per cent to close at N69.30, per share.

International Energy Insurance shed 9.84 per cent to close at N4.40, while UACN lost 7.75 per cent to close at N184.45, per share. 

The total volume traded rose by 34.34 per cent to 1.253 billion units, valued at N118.179 billion, and exchanged in 47,458 deals. Transactions in the shares of First Holdco topped the activity chart with 736.038 million shares valued at N80.812 billion. Access Holdings followed with 79.580 million shares worth N2.094 billion, while Guaranty Trust Holding Company (GTCO) traded 34.044 million shares valued at N4.419 billion.

Mutual Benefits Assurance traded 24.361 million shares valued at N85.326 million, while Zenith Bank transacted 21.455 million shares worth N2.575 billion.

On market performance, analysts noted that the concentration of over two-thirds of total market value in First Holdco underscores another session of heavy institutional participation, while the strong showing of tier-one banking stocks points to sustained investor interest in the financial sector.

Looking ahead, Imperial Asset Managers Limited said that “market sentiment is expected to remain broadly positive, underpinned by sustained liquidity, improving Year-to-Date returns, and continued institutional interest in bellwether stocks.

“Nonetheless, the near-equal balance between gainers and losers signals that investors are becoming increasingly selective, with stock-specific fundamentals likely to play a greater role in determining market direction.”

It stated that “attention will remain focused on upcoming corporate earnings releases, macroeconomic developments, and foreign exchange stability, while we continue to favour fundamentally strong companies with resilient earnings prospects and attractive dividend potential.”