The value of Nestle Nigeria Plc, Nigerian Breweries Plc, Stanbic IBTC Holdings Plc and seven others stocks depreciated by N122.2 billion on the Nigerian Exchange limited following investors profit-taking in anticipation of weak corporate earnings, among other factors.
The value of Nestle Nigeria dropped by N96.31 billion in January when its stock price depreciated by N121.50 to N1,435 at the end of January trading on the bourse. Analysts told THISDAY that most highly capitalised stocks like Nestle Nigeria, among others, often record decline not because anything is happening to the company.
Stanbic IBTC Holdings had announced 40 per cent drop in profit in its nine months ended September 30, 2021 unaudited result and accounts. The 14 companies contributed 82.2 per cent or N20.65 trillion to overall market capitalisation of N25.13trillion the stock market recorded in January. Notably, BUA Foods Plc, which was recently listed on the Exchange, added N439.2 billion in market capitalisation when it stock gained N24.40 or 61 per cent, while BUA Cement Plc gained N125.3billion in January.
Commenting on the stock market performance, the chief operating officer of InvestData Consulting Limited, Mr Ambrose Omordion said: “The market had a strong bull run in midst of selloffs and profit booking in Dangote Cement and others.