The Nigerian equity market reversed its recent bullish trend on Thursday, recording a significant loss of N308 billion in market capitalization. This decline followed profit-taking in large-cap stocks, which brought an end to a three-day winning streak. The All-Share Index fell by 0.39% to 120,779.05 points, dragging market capitalization from N76.81 trillion to N76.5 trillion. Despite this daily setback, the market has still posted strong longer-term gains, including a 2.48% weekly and 17.35% year-to-date return.
Trading activity was mixed, with 892.97 million shares worth N18.23 billion exchanged in 25,375 deals. While trading volume increased by 4%, the value of turnover dropped by 30%, indicating that most trades were in lower-priced stocks. The number of deals rose by 11%, reflecting sustained investor interest despite market volatility. Of the 128 equities traded, 33 advanced and 38 declined, highlighting a slightly bearish sentiment.
Top gainers included Skye Shelter Fund and Unilever Nigeria, both of which rose by 10%, followed closely by Neimeth Pharmaceuticals and UAC of Nigeria, which posted gains of around 9.98% and 9.97%, respectively. On the losing side, Thomas Wyatt Nigeria saw the steepest drop of 10%, followed by NAHCO, Oando Plc, and Associated Bus Company, with losses ranging between 8.92% and 9.99%.
In terms of trading volume, Ellah Lakes dominated with 113 million shares traded, while Access Holdings, Caverton Offshore, and Japaul Gold also recorded high turnover figures. This shows that investors are shifting focus toward highly liquid stocks, even amid short-term uncertainty.
Sectoral performance was mixed, with gains in Industrial (+2.11%) and Insurance (+1.08%), while other key indices like the Top 30, Premium, and Pension indices recorded marginal losses. Analysts at Afrinvest expect the market to remain under pressure in the near term as profit-taking continues to drive bearish sentiment across key segments of the market.
Source: Punch