Nestle Nigeria Plc Shareholders have lost N94.326 billion due to pressure to sell the shares. This happened during Thursday’s trading session on the NGX.
Reports showed that the consumer goods stock dropped by 10% to N1,071 per share from N1,190.00 with which it opened the trading session.
It is also revealed that Nestle closed the trading day with N848.934 billion in market capitalization. This is against N943.260 billion at the beginning of trading.
Reason For the Nestle Nigeria Plc Shareholders’ 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.