NGX Slumps as FX Losses Dent Corporate Earnings
The equities segment of the Nigerian Exchange (NGX) declined further on Tuesday as investors continue to pull back amidst unimpressive, FX losses dented earnings performance. Equities investors have been rushing for the door as huge fx losses dent corporate earnings.
Stock market movers saw their earnings impacted negatively, according to some unaudited financial statements for the first half of 2023 submitted to the Nigerian Exchange.
Today’s trading loss has extended negative sentiment in the local bourse to five consecutive trading days. Data from the local bourse showed that market indicators have declined significantly amidst a strong bearish grip.
The market index or the Nigerian Exchange All-Share Index decreased by 145.32 basis points today, representing a drop of -0.23% to close at 64,192.20. Now, the year-to-date return has moderated to 25.25%, still ahead of the annual inflation rate in Nigeria.
Equities investors lost ₦79.08 billion, representing a decrease of -0.23%, to close at ₦34,932.38 trillion from ₦35,011.46 trillion yesterday, Atlass Portfolios Limited said in its market update.
However, market activities were up, as the total volume and total value traded rose by +13.17% and +19.09% respectively. According to stockbrokers, approximately 762.10 million units valued at ₦7,710.21 million were transacted in 7,935 deals.
AIICO was the most traded stock in terms of volume, accounting for 41.30% of the total volume of trades, followed by UBA (7.15%), MANSARD (6.41%), ETI (5.50%), and FCMB (3.75%) to complete the top 5 on the volume chart.
MTNN was the most traded stock in value terms, with 12.29% of the total value of trades on the exchange. ABBEYBDS, and DANGSUGAR topped the advancers’ chart for today with a price appreciation of 10.00 percent each. The two stocks were trailed by CHELLARAM (9.87%), TANTALIZER (+9.68%), SUNUASSUR (+9.09%), MULTIVERSE (+8.72%), and sixteen others.
Thirty-seven stocks depreciated, where JOHNHOLT was the top loser, with a price depreciation of -10.00% to close at ₦1.80. JAPAULGOLD lost 9.71%, GUINNESS dipped by 8.26%, CUTIX fell by 8.03%, HONYFLOUR tumbled by 7.08% and WEMABANK declined by 3.33%.
All in, stock market breadth closed negative, recording 22 gainers and 37 losers while the sector performance closed positive.
Trading records showed that two of the five major market sectors were up, which includes the Insurance sector (+0.95%) and the Consumer goods sector (+0.54%), while the Consumer goods sector dropped by -1.94%. The Industrial and Oil and gas sectors closed unchanged. #NGX Slumps as FX Losses Dent Corporate Earnings FG to Provide N200 Bln Intervention for Food, Agric