Investors lose N726 billion as stock market reverses gains

Nigeria’s stock market closed lower on Tuesday, reversing gains recorded in the previous trading session as investors lost about N726 billion in market value.

The decline came after a three-day bullish run on the market, with sell-offs in several equities dragging down overall performance.

Market capitalisation dropped by 0.57 per cent, falling from N126.583 trillion at the start of trading to close at N125.857 trillion. Similarly, the All-Share Index declined by 1,130.87 points, or 0.57 per cent, dropping from 197,196.98 to 196,066.11.

The downturn also pushed the year-to-date return to 26 per cent. Market breadth closed negative, with 44 losing stocks compared to 33 gainers.

Declining stocks drive losses

Several equities recorded significant losses during the session. Nascon and Mutual Benefits Assurance led the losers’ chart, both dropping by 10 per cent to close at N147.60 and N4.59 per share, respectively. Red Star Express also declined by 9.94 per cent to close at N28.55, while Austinlaz fell by 9.88 per cent to settle at N3.74.

SCOA followed with a 9.85 per cent decline, closing at N27.90 per share.

Gainers emerge despite downturn

Despite the overall negative performance, some stocks posted gains.

Premier Paints led the gainers’ chart with a 9.97 per cent increase to close at N17.65.

Conoil rose by 9.95 per cent to N204.40, while Sunu Assurances also gained 9.95 per cent to end the session at N4.75 per share.

Daar Communications advanced by 9.84 per cent to close at N2.01, and Eterna increased by 9.56 per cent to finish at N51 per share.

Trading activity weakened during the session, with total volume traded falling by 2.06 per cent to 746.85 million shares valued at N27.85 billion across 65,275 deals.

Access Corporation recorded the highest trading volume with 80.26 million shares, representing 10.75 per cent of total volume for the day.

Zenith Bank posted the highest traded value at N3.29 billion, accounting for 11.82 per cent of the day’s market value.

Analysts link decline to profit-taking and global tensions

David Adonri, vice president of Highcap Securities Ltd., attributed the market downturn largely to profit-taking by investors.

He explained that more investors were currently selling shares to lock in profits than those buying, particularly as the earnings season for listed companies nears its end.

According to him, market activity often slows once most companies have released their financial results and announced dividends.

Adonri also pointed to the ongoing conflict involving Iran as a factor influencing investor sentiment.

He noted that when tensions escalated last week and crude oil prices rose, investors increased their positions in petroleum-related stocks.

However, the recent decline in oil prices has reduced demand for those equities.

He added that the conflict could disrupt global trade, which may negatively affect Nigeria’s largely import-dependent economy through higher costs and inflation pressures.

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