The Nigerian stock market returned to negative territory on Wednesday after investors wiped out N599 billion in market value through widespread sell-offs in several heavyweight stocks. The downturn erased the previous trading session’s gains, with losses in companies such as Nestlé Nigeria, Nigerian Aviation Handling Company (NAHCO), First Holdco, Nigerian Exchange Group (NGX), and Eterna weighing heavily on the market. The bearish performance reflected cautious investor sentiment despite strong trading activity.
At the close of trading, the All-Share Index (ASI) dropped by 927.70 points, representing a 0.38 percent decline to settle at 244,802.83 points. Consequently, the overall market capitalization fell to N158.016 trillion, highlighting renewed pressure on the equities market. Analysts noted that the decline was largely driven by profit-taking in large- and medium-cap stocks, as investors repositioned their portfolios ahead of more corporate earnings releases.
Despite the market’s weak performance, analysts remain optimistic about a potential rebound. Cowry Assets Management Limited believes investor confidence could improve as more listed companies publish their half-year financial results. According to the firm, stronger earnings from fundamentally sound companies may encourage renewed buying interest and provide clearer direction for the market in the coming weeks. However, market breadth remained negative, with only 13 gainers compared to 40 declining stocks, underscoring the cautious mood among investors.
On the gainers’ chart, AVA Capital led the market with a 9.94 percent appreciation to close at N9.95 per share. Livestock Feeds followed closely with a 9.71 percent gain, while Neimeth International Pharmaceuticals advanced 8.43 percent. AIICO Insurance and Oando also recorded modest gains, rising 3.47 percent and 3.30 percent, respectively. In contrast, Multiverse Mining & Exploration and LivingTrust Mortgage Bank topped the losers’ list after both declined by 10 percent, with McNichols, Thomas Wyatt Nigeria, and Eterna also posting significant losses.
Interestingly, trading activity remained vibrant despite the market decline. Total transaction volume surged by 69.25 percent to 1.562 billion shares, valued at N28.733 billion, across 54,160 deals. Japaul Gold & Venture dominated the activity chart with over 904 million shares traded, followed by Sterling Financial Holdings Company, FCMB Group, Chams Holding Company, and Neimeth International Pharmaceuticals. The sharp increase in trading volume suggests that investors remain actively engaged in the market, even as they navigate short-term volatility and await stronger corporate earnings to shape future investment decisions.
source: Leadership
