Emmanuel OchayiIn the bustling world of Nigeria’s stock market, investors trading on the Nigerian Exchange Limited (NGX) segment found themselves grappling with a significant setback.
Over three days, their collective investment took a staggering hit, plummeting by an estimated N468.4 billion. This downturn, attributed to persistent profit-taking activities, has sent ripples of concern throughout the investor community.
Expressing his concern, market analyst Emmanuel Sunday stated, “This decline reflects a challenging period for investors, with profit-taking overshadowing potential gains.”
The NGX All-Share Index, a crucial indicator of market performance, witnessed a notable drop to 104,256.81 basis points, marking a decline of 828.44 basis points or 0.8 percent since the market opened this week.
Despite this downturn, trading activities showed a mixed sentiment. While 29 stocks managed to advance, 24 experienced declines. Among the gainers were NEM Insurance and CWG, with both companies witnessing a remarkable 10 percent increase in their stock prices.
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Conversely, Secure Electronic Technology and The Initiates Plc (TIP) found themselves at the forefront of losses, each experiencing a 10 percent decline in their share prices.
Transaction volumes also saw a slight decrease, dipping by 2.73 percent to 298.652 million units, valued at N6.841 billion, and exchanged in 8,248 deals.
Amid this market turbulence, Access Holdings Plc made waves with its announcement of a strategic acquisition. Its flagship subsidiary, Access Bank Plc, has entered a binding agreement with Kenyan-based KCB Group Plc for the acquisition of the entire issued share capital of National Bank of Kenya Limited from KCB. This bold move is aimed at fortifying the bank’s footprint in Africa.
Meanwhile, PZ Cussons Plc faced a setback as the Securities and Exchange Commission (SEC) declined the company’s request for its majority shareholder, PZ Cussons (Holdings) Limited, to acquire shares held by minority shareholders at an offer price of N23 per share.
As investors navigate these turbulent waters, all eyes remain glued to the NGX, awaiting signals of a potential turnaround in fortunes.
