The Nigerian stock market experienced a reversal of fortunes on Thursday, with investors recording a loss of N457 billion. This downturn followed 23 consecutive sessions of gains. The decline was largely driven by profit-taking in various stocks, including McNicholas, Caverton Offshore Support Group, and Ikeja Hotel, among others.
According to data from the Nigerian Exchange Ltd., the market capitalization opened at N106.780 trillion but shed N457 billion, or 0.43 percent, to close at N106.323 trillion. The All-Share Index also declined by 0.43 percent, or 714.66 points, to close at 166,057.29. The market breadth closed negative, with 41 losers compared to 36 gainers.
McNicholas led the losers, dropping by 9.99 percent to settle at N6.58, followed by Caverton Offshore Support Group, which declined by 9.47 percent to close at N7.65. Ikeja Hotel lost 9.43 percent, ending the session at N35.05 per share. On the other hand, Nestlé Nigeria led the gainers with a 10 percent increase, settling at N2,153.80. NCR Nigeria and Jaiz Bank also recorded significant gains, rising by 9.97 percent and 9.92 percent, respectively.
A total of 1.03 billion shares worth N31.6 billion were traded across 51,227 deals, representing a 36 percent increase in volume and a six percent growth in value compared to the previous session. Zenith Bank recorded the highest value traded at N5.03 billion, accounting for 15.92 percent of the total value for the day.
Reacting to the market’s performance, David Adonri, Vice President of Highcap Securities, attributed the decline to market fatigue after prolonged sessions of gains. He noted that investors were repositioning their portfolios ahead of the earnings season, when corporate earnings disclosures would be made public. Adonri expects the market to regain momentum soon.
The Nigerian stock market’s downturn may be a sign of investors taking a cautious approach ahead of the earnings season. As companies prepare to disclose their financial performance, investors will be watching closely to determine the direction of the market. With the market’s history of resilience, it remains to be seen how the earnings season will impact investor sentiment and the overall performance of the Nigerian stock market.
