The Nigerian stock market suffered another major setback on Thursday as persistent sell-offs erased N959 billion from investors’ wealth, extending the market’s bearish run. The decline was largely driven by heavy losses in key stocks, including Aradel Holdings, Oando, Nigerian Exchange Group (NGX), Transcorp and Wema Bank, reflecting growing caution among investors amid continued market volatility.
At the close of trading, the All-Share Index (ASI) dropped by 1,493.71 points, representing a 0.64 per cent decline to settle at 233,580.83 points. Market capitalisation also fell sharply to N149.888 trillion, underscoring the impact of sustained profit-taking and weak investor sentiment across major sectors of the market.
Analysts observed that trading activity remained subdued throughout the session as many investors adopted a wait-and-see approach. According to Cowry Assets Management Limited, the market could experience a rebound in the coming sessions as bargain hunters begin to target fundamentally strong stocks. However, the firm warned that profit-taking in recently appreciated equities may slow the pace of recovery.
Market breadth remained firmly negative, with 34 stocks recording losses against only 14 gainers. Red Star Express emerged as the session’s biggest gainer, rising by 9.60 per cent to close at N24.55 per share. Legend Internet gained 9.09 per cent to N6.00, while Neimeth International Pharmaceuticals advanced 7.10 per cent to N8.30. Abbey Mortgage Bank and Ellah Lakes also posted notable gains, reflecting pockets of investor interest despite the broader market downturn.
On the losing side, Deap Capital Management & Trust and Aradel Holdings topped the decliners’ list with losses of 10 per cent each. Trading activity also weakened, with total transaction volume falling by 19.35 per cent to 393.65 million shares valued at N19.21 billion. Access Holdings led the activity chart with over 39 million shares traded, followed by Chams Holdings, Fidelity Bank, Sterling Financial Holdings and Zenith Bank. Despite the day’s losses, market watchers remain hopeful that improved investor confidence and attractive valuations could support a recovery in the weeks ahead.
source: Leadership