Nigerian Stock Market Reverses Gains, Records N193 Billion Loss

The Nigerian stock market experienced a reversal of gains on Wednesday, recording a loss of N193 billion. The market capitalization of the Nigerian Exchange Ltd. (NGX) shed N193 billion, or 0.35 per cent, to close at N55.454 trillion. This marks a significant decline from the previous session’s gain.

The All-Share Index also suffered a loss, declining by 0.35 per cent or 336.3 points to close at 96,537.48 points. This decrease has resulted in a Year-To-Date (YTD) return of 29.11 per cent.

The market’s negative performance was largely driven by selloffs in Tier-one banking stocks, including Zenith Bank, Access Corporation, Guaranty Trust Holding Company, and GTCO. These stocks declined, along with other equities, leading to a market breadth of 33 losers and 21 gainers.

On the losers’ chart, Oando led the way, declining by 10 per cent to close at N81.90. The Initiative Plc trailed closely, dropping 9.95 per cent to close at N1.81 per share. Other notable decliners included RT Briscoe, Secure Electronic Technology Plc, and Omatek.

In contrast, some stocks managed to post gains. Deap Capital Management and Trust Plc advanced by 9.52 per cent to close at N1.15, while Tantalizers rose by 8.47 per cent to close at 64k. Caverton also added 6.82 per cent to close at N1.41 per share.

Analysis of market activities revealed a decrease in trade turnover, with the value of transactions down by 21.43 per cent. Investors exchanged 389.23 million shares valued at N8.18 billion in 12,039 deals, compared to 473 million shares valued at N10.41 billion traded in 12,532 deals recorded previously.

Oando led the activity chart in volume and value, with 37.18 million shares worth N3.10 billion. Universal Insurance followed, with 33.71 million shares valued at N12.66 million. Transnational Corporation sold 29.02 million shares valued at N321.76 million, while FTN Cocoa traded 22.74 million shares worth N35.14 million. GTCO transacted 21.95 million shares valued at N1.01 billion.

The Nigerian stock market’s reversal of gains serves as a reminder of the importance of caution and diversification in investing. As the market continues to evolve, investors must remain vigilant and adapt to changing circumstances to achieve their financial goals.