Nestle Nigeria Plc, has recorded a loss of about N199.036 billion at the end of last week to top the losers’ chart of the following sustained sell pressure witnessed on the stock.
It should be noted that Nestle is one of the major fast consumer moving goods companies quoted on the Nigerian Exchange Group Plc (NGX),
The consumer goods stock of the company dropped by 20.67% to N963.90 per share at the end of the week from N1, 215.00 with which it opened the trading week on Monday 21st November.
Further analysis showed that Nestle closed the trading week with N764.0414 billion in market capitalisation, as against N963.077 billion at the beginning of the trading week.
Negative sentiment: The decline in Nestle’s share price was due to investors’ negative sentiment which triggered sell-offs, plunging the stock’s value down. This comes amid a build-up to the 2023 general election and a recent interest rate hike by the Central Bank of Nigeria.
Market operators earlier told Nairametrics that the decision of the CBN to increase the interest rate by 16.5% could hurt the equities market by prompting investors to navigate towards fixed-income space.