Aradel Holdings drop N208bn in single day trading
By Kayode Ogunwale
Aradel Holdings PLC has reported a substantial loss of N208.3 billion in a single trading day. This development occurred merely two days after the company successfully listed its shares on the Nigerian Exchange (NGX).
The bourse however experienced a downturn after a strong start to the week, with the benchmark index slipping 25 basis points to close at 98,291.53 points.
Meanwhile market capitalisation also declined by N148.06 billion, settling at N59.56 trillion. The bearish sentiments were primarily driven by profit-taking in Aradel Holdings Plc with 5.85 percent loss and selloffs in Okomu Oil Plc with 6.86 percent loss and Nestle Nigeria Plc with 2.25 percent loss, which outweighed gains in Dangote Sugar Plc and Oando Plc.
Market breadth was marginally negative with 23 laggards edging out 22 gainers. Deap Capital Plc led the gainers with 10 percent while Custodian Alliance Plc topped the laggards with 8.98 percent.
On the activity front, both volume and value traded decreased by 9.96 percent and 66.46 percent, respectively, with 257 million units traded worth N26.82 billion. Fidelity Bank Plc led the volume chart with 38.21 million units represented 14.84 percent of total volume, while Aradel Holdings Plc led the value chart, accounting for N3.14 billion represented 35.01 percent of total value.
Sector performance was mixed, with three indices closing in green and two in red. The Consumer Goods sector rose by 0.46 percent gained due to bullish sentiment in Dangote Sugar Plc which was 9.69 percent and Champion Breweries Plc with gain of 9.65 percent which offset selloffs in Nestle Nigeria with loss of 2.25 percent.
The Insurance sector recorded 0.40 percent increase and the Oil and Gas improved by 0.02 percent as index closed higher due to positive performances in NEM Insurance Plc and Oando Plc, respectively.
In contrast, the Banking sector dropped by 0.04 percent and Industrial Goods sector shed 0.03 percent contracted slightly due to selloffs in Fidelity Bank Plc and Lafarge Africa.
Meanwhile bearish sentiment rocked the secondary bond market, with selloffs across the short-end, mid-segment, and long-end of the curve.
Notable declines were seen in the June 2038, February 2031, and July 2030 instruments. As a result, average yields rose by 12 basis points, settling at 19.22 percent.
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