The selling pressure witnessed on the shares of Nestle Nigeria Plc during recent trading session on the NGX has resulted in shareholders losing about N94.326 billion.
According to Nairametrics, the consumer goods stock dropped by 10% to N1,071 per share from N1,190.00 with which it opened the trading session yesterday.
Further analysis showed Nestle closed the trading day with N848.934 billion in market capitalisation, as against N943.260 billion at the beginning of trading.
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.