Nestle Nigeria Plc, has recorded a loss of about N199.036 billion at the end of the week. This made the company top the losers’ chart.
The consumer goods stock dropped by 10% to N1,071 per share from the N1, 190.00 with which it opened the trading session yesterday.
Further reports also revealed that Nestle Nigeria closed with N838.934 billion in market capitalization. This is against the N943.260 billion at the beginning of trading.
Read Also: Nestle Nigeria Shareholders Lose N94 Billion
Back story Of Nestle Nigeria Loss
The Nestle loss was due to investors’ negative sentiment. This allowed a quick dip in the stock value and also triggered sell-offs.
All these happened amid the preparation for the general election and a recent interest rate hike by the Central Bank of Nigeria.
Speaking to the media, market operators revealed that the decision of the CBN to increase the interest rate by 16.5% could affect the equities market. This will push investors to go toward the fixed-income space.
Who Are The Top Gainers
Although Nestle lost a big time in the trading, there are however some top gainers at the trading. Topping the gainers chat, are Transactional Corporation Plc, and Zenith Bank Plc (measured by volume). They account for 194.600 million shares worth N1.191 billion in 1,974 deals, thereby contributing 27.35 and 7.76% to the total equity turnover volume and value respectively.
Conclusion
Although Nestle’s loss was massive, Thursday’s trading day activities on the floor of the Nigerian Exchange (NGX) closed with a gain of N203 billion. The gainers were able to maintain their grasp on the local market.
This is not the first time a startup giant would experience this. It would be recalled that the investors of Airtel recorded a total loss of ₦1.833 trillion last month. With that, Airtel led the losers’ chart with a maximum 10% loss for three days.
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