Nigerian Stock Market Slides Again as Sell-Offs Wipe N69 Billion from Market Capitalization

The Nigerian equities market continued its downward trend yesterday, closing in negative territory as widespread profit-taking weighed on investor sentiment. The All Share Index (ASI) dropped by 108.01 points, a 0.08% decline, to settle at 143,614.61 points, while market capitalization fell by N69 billion to N91.346 trillion. Analysts say the decline reflects ongoing caution among investors in a volatile market.

Losses were primarily driven by medium- and large-cap stocks, including Vitafoam Nigeria, United Bank for Africa (UBA), Africa Prudential, Sterling Financial Holdings, and Transnational Corporation (Transcorp). These declines underscore the pressure on prominent players as traders adjust positions ahead of key economic announcements.

Market watchers from Futureview Group highlighted that investors are likely to remain cautious in the coming days, particularly with the Central Bank’s Monetary Policy Committee (MPC) rate decision and Monday’s FGN Bond auction on the horizon. They recommended focusing on fundamentally strong stocks that offer attractive valuations, signaling selective opportunities despite the bearish trend.

Some stocks bucked the broader downtrend, with eTranzact International leading the gainers at 9.06%, closing at N14.45 per share. International Energy Insurance rose 8.49% to N2.30, while McNichols gained 7% to N2.75. C&I Leasing and UPDC also recorded modest gains of 5.47% and 5.26%, respectively, providing small relief amid an overall soft market sentiment, reflected in a slightly negative market breadth of 17 gainers against 26 losers.

On the flip side, NPF Microfinance Bank was the biggest loser, falling 7.85% to N2.70 per share. Prestige Assurance and Sterling Financial Holdings dropped 7.48% and 6.94%, respectively, while Wapic Insurance and Deap Capital Management & Trust recorded losses of 6.18% and 5.59%. Trading activity remained strong, with a total volume of 694.777 million units valued at N28.672 billion. Guaranty Trust Holding Company (GTCO) led in transactions, highlighting persistent investor interest in select blue-chip stocks despite market declines.

source: Leadership