The Nigerian stock market experienced a significant reversal on Thursday, with investors recording a loss of N457 billion. This downturn followed 23 consecutive sessions of growth, driven by profit-taking in various stocks, including Mc Nicholas, Caverton Offshore Support Group, and Ikeja Hotel. The market’s performance was reflected in the Nigerian Exchange Ltd.’s (NGX) market capitalization, which decreased by 0.43% to N106.323 trillion, down from N106.780 trillion at the opening.
The All-Share Index also declined by 0.43%, or 714.66 points, to close at 166,057.29, compared to 166,771.95 on Wednesday. The market breadth was negative, with 41 losers and 36 gainers. Mc Nicholas led the losers, with a 9.99% decline to N6.58, followed by Caverton Offshore Support Group, which fell by 9.47% to N7.65. Ikeja Hotel and FTN Cocoa Processors also experienced significant losses, of 9.43% and 9.38%, respectively.
In contrast, some stocks, such as Nestlé Nigeria, NCR Nigeria, and Jaiz Bank, recorded gains, with Nestlé Nigeria leading the gainers’ chart with a 10% increase to N2,153.80. A total of 1.03 billion shares worth N31.6 billion were traded in 51,227 deals, representing a 36% increase in volume and a 6% growth in value compared to the previous session.
According to David Adonri, Vice President of Highcap Securities, the market’s negative performance is a normal development, as investors reposition their portfolios in anticipation of the upcoming earnings season. Adonri noted that the market had been due for a rest after a prolonged period of growth. The earnings season is expected to bring new momentum to the market, as corporate earnings disclosures are revealed to the investing public.
The Nigerian stock market’s performance is closely watched by investors and analysts, as it provides insight into the country’s economic health. The market’s recent growth streak had been driven by a combination of factors, including increased investor confidence and improving economic fundamentals. Despite the current downturn, analysts expect the market to regain momentum in the coming weeks, driven by the release of corporate earnings and other market dynamics.
