Livestock Feeds Plc shares fell sharply on the Nigerian Exchange on Tuesday as investors took profits following a spectacular two-week rally that more than doubled the company’s share price.
The stock declined 9.76 percent from N18.95 to N17.10, shedding N1.85 during the session to lead the equity decliners.
The selloff followed two consecutive weeks of exceptional gains that had lifted Livestock Feeds from N8.90 to N19.00, representing an increase of approximately 113.5 percent.
During the week ended October 9, Livestock Feeds surged 47.75 percent from N8.90 to N13.15, making it the biggest gainer on the Nigerian Exchange for the week.
The rally accelerated the following week, with the stock climbing another 44.49 percent from N13.15 to N19.00 by October 16.
The two-week advance added N10.10 to the share price and meant an investor holding the stock at N8.90 had seen its market value more than double within the period.
The October 20 decline therefore represents a reversal from the extraordinary pace of gains recorded during the preceding two weeks.
Even after falling to N17.10, Livestock Feeds remains approximately 92.1 percent above its N8.90 level at the beginning of the two-week rally.
The stock is also only 10 percent below the N19.00 closing level recorded at the end of last week, leaving most of the gains accumulated during the rally intact.
Livestock Feeds’ recent performance has also been accompanied by significant trading activity. During the week ended October 16, the company was one of the three most actively traded equities alongside Access Holdings and UBA.
Together, the three stocks accounted for 413.96 million shares, representing 24.96 percent of total market volume.
The latest decline came despite an improvement in the broader equities market on October 20.
The NGX All-Share Index rose 0.26 percent to 245,911.13 points, while investors traded 348.75 million shares worth N25.88 billion in 32,639 deals.
Equities market capitalisation closed at approximately N159.668 trillion.
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