Market Turmoil: Nestle, FBNH Slump Drives N200bn Loss for Equities Investors

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by Niyi Jacobs

Equities investors at the Nigerian Exchange (NGX) faced a setback, witnessing a staggering loss of approximately N200 billion, reversing the positive momentum observed earlier in the week.

This downturn was primarily attributed to selloffs in Nestle, FBNH, and other key stocks.

The market indicators took a hit, declining by -0.35%, pushing the year-to-date returns behind the annual inflation rate of 33.20%. Stockbrokers attributed today’s negative performance to sustained bearish sentiment amidst banking sector574.43 recapitalization, elevated yields in the fixed income market, and overall economic uncertainties.
Leading the downward trend were key stocks like NESTLE, FBNH, ACCESSCORP, among others, contributing to a collective wealth loss of approximately ₦200 billion for investors. The All-Share Index (ASI) dropped by 353.51 basis points, closing at 99,311.54, as reported by Atlass Portfolios Limited.

Despite the market downturn, trading activities saw an uptick, with total volume and total value traded increasing by +87.34% and +47.95%, respectively, compared to previous sessions. A total of 574.43 million units valued at ₦7,842.52 million exchanged hands in 7,324 deals, according to data from the Nigerian Exchange.

TRANSCORP emerged as the most traded stock by volume and value, accounting for 27.73% and 26.14% of total volume and value traded, respectively.

Other top volume drivers included UBA, ACCESSCORP, UNIVINSURE, and TIP.
On the gainers’ side, SUNUASSUR led the pack with a price appreciation of 10.00%, followed by JAPAULGOLD with a gain of +9.84%. Meanwhile, HONYFLOUR emerged as the top loser, with a price depreciation of -9.89%, followed by FBNH, OANDO, FTNCOCOA, and NESTLE.

Market breadth closed negative, with 16 gainers and 25 losers, while three out of five major market sectors ended in the red.

The Banking sector recorded the highest decline of 2.94%, followed by Consumer goods (-0.80%) and Insurance (-0.51%). However, the Industrial sector saw growth of +0.30%, while the Oil & Gas sector remained flat.
Overall, the equities market capitalization witnessed a decline of ₦199.80 billion, representing a drop of -0.35%, closing at ₦56.17 trillion