Nigerian Stock Market Sees 0.4% Dip Amid Profit-Taking, Analysts Forecast Market Rebound

The Nigerian Exchange Limited (NGX) began the week on a negative note, with the All Share Index (ASI) dipping by 0.4%, or 471.93 points, to close at 108,261.47 points. This decline was largely attributed to profit-taking activities by investors who sought to capitalize on recent gains in the market. As a result, market capitalization decreased by N296 billion, ending the session at N68.043 trillion. Losses were particularly notable in medium and large-cap stocks like MTN Nigeria, Nigerian Aviation Handling Company (NAHCO), and Nigerian Breweries.

Analysts identified the selloff as a typical response to capital appreciation over the past months, as investors liquidated positions to secure profits. United Capital Plc noted that the market could experience mixed sentiments in the short term, as investors await the upcoming Monetary Policy Committee (MPC) meeting. The current high-interest-rate environment may continue to dampen investor enthusiasm, although opportunistic traders could still find opportunities in specific stocks.

Despite the overall downturn, market sentiment showed some positivity, as 39 stocks advanced compared to 26 decliners. Among the top gainers were Meyer, Multiverse Mining & Exploration, and Smart Products Nigeria, each posting a 10% gain. Other notable gainers included Beta Glass and Haldane McCall, both of which saw their stock prices rise by nearly 10%.

On the downside, eTranzact International led the decliners, falling by 10%, followed by John Holt and Union Dicon Salt. C&I Leasing and Linkage Assurance also experienced notable declines. The overall trading volume decreased by 10.73%, with 414.574 million units of shares valued at N10.717 billion being exchanged in 16,664 deals.

Noteworthy trading activity occurred in stocks like Tantalizer, which led the activity chart with 49.189 million shares traded, followed by VFD Group and Access Holdings. Zenith Bank and AIICO Insurance also featured prominently in the day’s trading, with significant volumes traded, reflecting ongoing investor interest in large-cap stocks despite the broader market decline.

Source: The Guardian