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VENTURES AFRICA – Well capitalised firms ended up losing most on Thursday as trading at the Nigerian Stock Exchange (NSE) ended at a total value of N4,745,051,412.16 ($28.9 million), with Nestle, Guinness, Dangote Cement, and Nigerian Breweries topping the losers’ list.
Nestle which sits atop the losers’ chart ended the day with an N18 ($0.11) loss to close at N1, 102 ($6.7) per share.
Guinness, which tails Nestle on the list, lost N5 to close the day at N212. Nigerian Breweries also shed N4.50 to end the day at N145.50 per share.
Dangote Cement’s loss was N3.96, and it closed at N235. Other top losers were Unilever and Presco.
Being two of the top three strongly capitalised stocks, Dangote Cement and Nestle’s losses wiped off about N92.9 billion from the market capitalisation of the NSE, as it ended with a N289 billion decline to close at N12.62 trillion.
The biggest gainer of the day was NEWGOLD whose N9 gain dwarfed the gain of others, with Julius Berger who was second on the gainers’ list closing with a N0.95 gain. Other top gainers were PZ and Redstarex.
The All Share Index (ASI) of the NSE experienced a free fall, losing 900.67 points or 2.24 percent to close at 39,378.15 on Thursday, the biggest single fall since June 12 and 13 2013 when market plunged by -2.74 percent and -3.88 percent respectively, according to Proshare, a leading brand on Nigerian Financial Market.
Analysts say yesterday’s loss could be attributed to panic sales resulting from prolonged speculative trading.
There are chances the current downtrend will be extended, with increasing foreign investors sell-off and other pointers in the economy expected to make stocks continue to struggle. It would therefore be wise for investors to be cautious at this time and cut down on impulse buying.