The Nigerian stock market experienced a downturn on Tuesday, reversing previous gains as investors engaged in aggressive profit-taking across key heavyweight stocks. This led to a decline in the benchmark All-Share Index. The market capitalisation dropped significantly, reflecting the overall negative sentiment in the market. Investors lost approximately N468.63 billion in total equity valuation.
The All-Share Index fell by 721.91 points or 0.29 per cent to close at 251,913.20 points, compared to its previous closing level of 252,635.11 points. The market capitalisation decreased from N163.99 trillion recorded on Monday to close at N163.53 trillion. Trading sentiment reflected heightened selling pressure, particularly in the banking, industrial, and consumer goods sectors.
Several stocks recorded significant losses, contributing to the overall market decline. Sovereign Trust Insurance led the decliners, shedding 9.92 per cent to close at N2.36. Unilever Nigeria followed closely, dropping 8.55 per cent to N100.50. Other prominent laggards included Neimeth International Pharmaceuticals, which fell by 6.02 per cent to N7.80, and BUA Cement, which dropped 3.10 per cent to finish at N287.80.
Major financial sector stocks also faced downward pressure. GTCO and Zenith Bank shed 3.28 per cent and 1.03 per cent to settle at N132.50 and N134.00, respectively. Despite the overall market dip, several stocks posted strong gains, cushioning the downturn. NPF Microfinance Bank and LivingTrust Mortgage Bank led the gainers’ chart, with both equities advancing by 10.00 percent to close at N4.40 and N2.86, respectively.
Other stocks that recorded significant gains included WAPIC, which increased by 9.95 per cent to N2.43, and VFD Group, which gained 9.84 per cent to finish at N13.40. Hospitality major Transcorp Hotels also recorded an impressive rally, rising by 9.42 per cent to reach N290.50 per share. These gains helped mitigate the negative impact of the market decline.
In terms of sectorial performance, the NGX Banking Index contracted by 0.91 per cent to 2,727.81 points, driven down by profit-taking in tier-one lenders. The Consumer Goods Index declined by 0.83 per cent to 4,056.52 points, while the Industrial Goods Index dropped 0.91 per cent to close at 10,372.27 points.
The Insurance sector stood out as a bright spot, with the NGX Insurance Index rising by 0.38 per cent to close at 1,098.22 points. Market activity ended with a total exchange of 548.65 million shares traded across 47,203 deals. The article was reported by Jide Ajia, a seasoned journalist with over 12 years of experience in business-related stories.
Key points
- The Nigerian equity market declined due to aggressive profit-taking across key heavyweight stocks.
- The market capitalisation dropped by N468.63 billion in total equity valuation.
- The Insurance sector was a bright spot, with the NGX Insurance Index rising by 0.38 per cent.
