Nigeria’s stock market may record another negative trading session on Wednesday as the bears resurfaced on the Bourse on Tuesday. Investors took profit from some counters following previous trading sessions of bargain hunting that pushed stock prices higher.
The market on Tuesday June 15, being the first trading day into this new week after the public holidays, witnessed a decline of 1.66percent or N340billion, thereby defying earlier expectations of continuing rally.
The record negative on Tuesday was driven by activities of profit-takers in stocks like Airtel which led the losers league, moving from N837 to N753.30, after shedding N83.70 or 10percent, followed by that of Okomu Oil Palm which decreased from N116.50 to N105.50, losing N11 or 9.44percent.
The Nigerian Exchange Limited (NGX) All Share Index (ASI) and market capitalisation printed lower at 38,507.29 points and N20.069trillion respectively from preceding trading day highs of 39,157.29 points and N20.409trillion.
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The market’s negative year-to-date (YtD) return stood higher at -4.38percent at the close of trading on Tuesday. In 4,402 deals, investors exchanged 297,346,399 units valued at N3.649billion.
“With bearish sentiment appearing to hold sway in the market at present, we believe further sell-downs are possible in the coming sessions. However, we do expect savvy investors to take advantage of depressed stock prices to make strategic purchases”, equity research analysts at Lagos-based Vetiva said in their June 15 note.
