By Chinwendu Obienyi
Due to sustained profit- taking in stocks trading on the floor of the Nigerian Exchange Limited (NGX), investors have now lost about N204 billion in three consecutive trading sessions.
The market had been outperforming other peers in recent weeks owing to price appreciation in some stocks as well as impressive full year (FY) 2021 and first quarter (Q1) 2022 earnings from companies listed on the bourse.
However, losses in some high and mid-capitalised (midcap) stocks on the NGX has led to the market’s weak performance this week.
Having lost 0.29 and 0.35 per cent on Monday and Tuesday, market sentiment was further dampened as the index dropped 0.07 per cent to close at 52,721.34 points while market capitalisation dropped N19 billion to N28.422 trillion from N28.441 trillion.
This means that investors’wealth has dropped by N204 billion from this week’s opening value of N28.625 trillion.
Commenting on the development, the Chief Executive Officer, Crane Securities, Mike Eze, said the market is experiencing rest after locking down gains in recent weeks.
“What the market is experiencing now is a form of “rest” from the gains it has been recording in weeks now. For now, investors are cautious. So, that is why the market is experiencing the loss seen in three days”, he said.
At the close of trading yesterday, 22 stocks depreciated in value while 19 others appreciated. Academy led the laggards with 9.93 per cent to close at N1.36 per share, Neimeth followed with 8.86 per cent to close at 7.20, Berger lost 8.57 per cent to close at N1.60, May and Baker fell by 8.51 per cent to close at N4.31 while Wema Bank declined by 7.61 per cent to close at N3.28.