The Nigerian stock market experienced a decline on Thursday, ending a 23-session winning streak, as investors suffered a combined loss of N457 billion. This downturn was attributed to profit-taking activities in several stocks, which reversed the gains made in the previous session at the Nigerian Exchange Limited (NGX).
The market capitalization decreased by N457 billion, or 0.43 percent, to N106.323 trillion from N106.780 trillion recorded on Wednesday. Similarly, the NGX All-Share Index fell by 714.66 points, or 0.43 percent, to settle at 166,057.29, compared with 166,771.95 in the prior session. The market breadth closed negative, with 41 stocks declining against 36 gainers.
Stocks such as Mc Nicholas, Caverton Offshore Support Group, Ikeja Hotel, FTN Cocoa Processors, and Neimeth International Pharmaceutical led the decline. In contrast, NestlĂ© Nigeria topped the gainers’ list, followed by NCR Nigeria, Jaiz Bank, and Morison Industries. Trading activity remained robust, with investors exchanging 1.03 billion shares valued at N31.6 billion across 51,227 deals. This represents a 36 percent increase in trading volume, a six percent rise in value, and an eight percent drop in the number of deals compared to the previous session.
Zenith Bank emerged as the most traded stock by value, with transactions worth N5.03 billion, accounting for 15.92 percent of the total value traded. Access Corporation and Zenith Bank also led by volume, accounting for 7.58 percent and 7.00 percent, respectively. The market’s decline comes after it extended its bullish run on Wednesday, adding N598 billion to investors’ portfolios.
The Nigerian Exchange Limited has been experiencing a period of growth, with the NGX All-Share Index reaching new highs in recent weeks. The market’s performance is closely watched by investors and analysts, as it provides insight into the country’s economic indicators. As the market continues to evolve, investors will be monitoring the trends and developments to make informed decisions. The recent decline may be a sign of market correction, and it will be interesting to see how the market performs in the coming sessions.
