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Dangote Refinery IPO Preparations Trigger N1.88 Trillion Loss In Equities Market
Equity Markets
The Nigerian equities market on Tuesday halted its three-day bullish rally as investors lost N1.879 trillion, following increased sell-offs ahead of the Dangote Petroleum Refinery IPO. Mr Aruna Kebira, Managing Director, Globalview Capital Ltd., attributed the market downturn to investors repositioning their portfolios ahead of the Dangote Refinery IPO. Kebira said investors were selling down their holdings to raise funds in anticipation of the offer, resulting in a significant imbalance between sell and buy orders. “Preparations for the Dangote Refinery IPO caused the downturn in performance today. “The number of people selling is high. Today, our sales were about 15 times higher than purchases. “Everybody is selling to prepare for the Dangote Refinery IPO and the further disruption expected in the market,” he said. The analyst said the strong selling pressure had pushed down demand, noting that many investors were positioning their portfolios to participate in the IPO. He said the development was no longer speculative, following the formal signing ceremony and commencement of activities ahead of the offer. “The idea was muted before, but now the signing ceremony has been held and the offer is expected to open on the trading floor on Sept. 14. “So, it is no longer a rumour,” he said.
Nigeria