The Nigerian Stock Exchange Industrial Index at the close of trading activities for the second month of 2021, closed on a bearish note, with the index depreciating by 8.8%, to close at 1898.2 index points for the month.
A preview of the performance of the index revealed that it shed a total of 183.17 index points – the highest since November 2018 (-190.58 index points).
This steep decline in the index was occasioned by the sell-off by wary investors in the shares of companies in the industrial sector, with the shares of Lafarge (WAPCO), BUA, and Dangote Cement being one of the shares impacted on the exchange.
The sell-off however was triggered by profit-taking activities across the market spectrum.
However, other factors that contributed to this sell-off may include rising yields in the money market spooked by CBN’s move to increase yields for OMO bills, as well as expectations of further devaluation of Naira.
What you should know
- The NSE Industrial Index was designed to provide an investable benchmark to capture the performance of the Industrial Sector. It comprises the most capitalized and liquid companies in the industrial sector and is based on the market capitalization methodology.
- The index monitors the performance of ten industrial companies on the Nigerian Stock Exchange which includes Dangote, BUA, and Lafarge Cement.
- The overall performance of the companies was bearish in February as the index closed on a negative note with eight losers.
- WAPCO (-23%) led the loser’s chart for the month, followed by Berger (-9.94%) and Betaglas (-9.75%).
- WAPCO down by 23.00% to close at N23.10
- BERGER down by 9.94% to close at N7.25
- BETAGLAS down by 9.75% to close at N50.00
- BUACEMENT down by 8.86% to close at N72
- PORTPAINT down by 7.14% to close at N3.25
- DANGCEM down by 6.78% to close at N220