This week ended with yet another sell-off as stocks shed a whopping N900 billion in one week. A major reason for the decline were some Blue Chip Nigerian companies contributing in dragging the index back by about 2.9%.

Amongst this park were 7 Blue Chip stocks that cut across the banking, pharmaceutical, FMCG and Upstream sector. This basically reflects the mood in the economy which is currently suffering from rising inflation, drop in Government revenue and cut in disposable income of companies.

Here are the companies and the possible unique reasons why they got a pounding

Stock Close Yr high Yr low Possible Reason
CADBURY NIGERIA PLC 35.05 42.00 35.05 Poor results, negative outlook
FBNH PLC 6.90 10.44 6.90 Fear that the bank might right off some bad oil and gas loans
GLAXO SMITHKLINE CONSUMER NIG. PLC 40.00 56.26 40.00 Weaker margins , profit drop, negative outlook
GUINNESS  NIG  PLC 125.10 168.00 125.00 Competition and negative outlook
NIGERIAN BREW PLC. 121.00 163.76 121.00 Competition and negative outlook
SEPLAT PETROLEUM DEVELOPMENT COMPANY LTD 300.00 450.10 300.00 Fall in oil price and loss of market share, negative outlook
TRANSNATIONAL CORPORATION OF NIG. 2.06 3.50 2.06 Price correction, negative outlook

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