Investors are exiting their investment in Nestle Nigeria, as the capital market turns negative towards the firm, amid expectations of it’s stock price declining ahead of management meeting over operational decisions.
While the meeting is still in June, the company is already feeling the negative sentiment around its stock, which dipped 2.78% on Tuesday, with the price losing N40 to sell at N1395 per share, from N1435 it sold for on Monday.
This reflects Nestle Nigeria‘s investors are engaging in profit-taking ahead of the board meeting centered around financials and shareholders dividend, amid other special businesses.
Following the sell off by investors, shareholders of Nestle Nigeria lost N31.70 billion, with their total investment in the company dwindling to N1.10 trillion, from N1.13 trillion on Tuesday.
A member of the board, David Ifezulike, who is the chairman of Nestle Nigeria, is also feeling the heat, having lost N2.25 million in one day, from his N80.72 billion invested in the firm, which is now down to N78.47 billion.
As at the time of filing this report, Nestle Nigeria’s stock was trading flat on the exchange floor, as caution gripped the capital market during trading hours.