Nigerian Stock Market Extends Losses, Investors Lose N514 Billion in Two Sessions
The Nigerian equities market sustained its bearish momentum on Thursday, extending losses into a second consecutive session and pushing weekly returns into negative territory. This persistent decline has resulted in a significant erosion of investor wealth, with approximately N514 billion wiped off the market's valuation.
Market Performance and Key Indicators
The benchmark All-Share Index (ASI) fell by 0.41%, dropping from 194,370.20 points to 193,567.81 points. Correspondingly, market capitalisation declined by 0.41% to close at N124.24 trillion. This downward movement has moderated the year-to-date (YTD) return to 24.39%, reflecting the impact of recent selling pressure.
Market breadth closed negative, with 38 decliners outweighing 30 gainers. The bearish sentiment was primarily driven by profit-taking activities across heavyweight sectors including banking, consumer goods, and oil and gas stocks.
Top Losers and Gainers
Among the notable decliners, Jaiz Bank Plc led the losers' chart, falling from N14.03 to N12.63, representing a 9.98% loss. Other significant losers included:
- Ikeja Hotel Plc: Dropped from N41.90 to N37.75 (-9.90%)
- John Holt Plc: Declined from N9.60 to N8.65 (-9.90%)
- Enamelware Plc: Decreased from N40.50 to N36.50 (-9.88%)
- Lotus Halal Sukuk 2035: Fell from N178.65 to N161.22 (-9.76%)
On the positive side, FTN Cocoa Processors Plc topped the gainers' chart, rising from N5.50 to N6.05, a 10.00% increase. Other notable gainers included:
- Federal Government of Nigeria Sukuk 2032: Surged from N100.00 to N134.00 (+34.00%)
- RT Briscoe Plc: Advanced from N10.35 to N11.38 (+9.95%)
- Deap Capital Management & Trust Plc: Increased from N6.35 to N6.98 (+9.92%)
- Japaul Gold & Ventures Plc: Climbed from N3.43 to N3.77 (+9.91%)
Most Actively Traded Stocks
Trading activity remained robust despite the bearish trend. Jaiz Bank Plc led in volume with 78.94 million shares valued at N1.16 billion. Other actively traded stocks included:
- Japaul Gold & Ventures Plc: 73.25 million shares worth N274.78 million
- Access Holdings Plc: 66.91 million shares valued at N1.74 billion
- Chams Holding Company Plc: 56.89 million shares worth N239.57 million
- Zenith Bank Plc: 45.49 million shares valued at N4.06 billion
Context and Broader Market Conditions
The sustained bearish trend comes amid broader economic developments. Earlier in the week, the naira rebounded in the parallel foreign exchange market after the Central Bank of Nigeria (CBN) lowered its benchmark interest rate by 50 basis points. The Nigerian currency strengthened by N10 against the dollar, with the greenback quoted at N1,390 in the black market, up from N1,400 on Tuesday.
However, the official exchange rate continued to weaken, closing at N1,355.37 per dollar on Tuesday, down N6.13 or 0.5% from Monday's rate at the Nigerian Foreign Exchange Market window. This divergence between parallel and official rates adds complexity to the investment landscape.
The current market correction reflects typical profit-taking behavior following previous gains, with investors capitalizing on earlier rallies in key sectors. Market analysts will be closely monitoring whether this bearish trend represents a temporary adjustment or the beginning of a more sustained downturn.
