Nigeria’s stock market witnessed a decline on Wednesday, shedding N673 billion in market capitalization. This downturn was driven by heavy selling in prominent stocks like MTN Nigeria and Transcorp Hotel.
Market Loses Ground
- Market capitalization fell 1.20% (N673 billion) to N55.494 trillion compared to the previous day’s N56.167 trillion.
- The All-share Index also dipped 1.20% (1,190 points) to close at 98,121.30, down from 99,311.54.
- Year-to-date (YTD) return dipped to 31.22%.
Sell-Offs Drag Market Down
The decline was primarily caused by significant sell-offs in major companies, including:
- MTN Nigeria: down 10% to N201.60 per share
- Transcorp Hotel: down 10% to N87.93 per share
- FBN Holdings: down 9.82% to N19.75 per share
- Oando: down 9.90% to N9.10 per share
- FIDSON Healthcare Plc: down 9.82% to N19.75 per share
Limited Gains Amidst Downturn
Despite the overall drop, a few stocks managed to gain:
- Sunu Assurances: up 10% to N1.21 per share
- Neimeth International Pharmaceuticals: up 10% to N1.98 per share
- The Initiative Plc (TIP): up 10% to N1.98 per share
- Cap Plc: up 9.90% to N28.85 per share
- UPDC Real Estate Investment Trust: up 9.76% to N1.35 per share
Market Activity Picks Up
Trading activity increased compared to the previous day:
- The value of transactions rose 22.10%.
- A total of 395.75 million shares valued at N9.58 billion were exchanged.
- Guaranty Trust Holding Company Plc (GTCO) led by volume and value traded.
Expert Sees Market Correction
Market analyst David Adonri attributes the recent decline to a correction in the market, aligning prices with underlying fundamentals. He suggests that high interest rates on debt instruments and a lack of justification for the previous stock price surge are contributing factors.
Credit: News Agency of Nigeria (NAN)
