Lagos: The Nigerian equities market declined on Wednesday as selloffs in heavyweight and mid-cap stocks reduced investors’ wealth by N1.619 trillion.
Market capitalisation declined by 1.02 per cent to N159.660 trillion. The All-Share Index fell by 2,573.05 points as profit-taking and easing geopolitical tensions in global oil markets ended the market’s bullish streak, influencing trading.
Selloffs in heavyweight and mid-cap stocks, including BUA Cement, CAP, E-Tranzact International, International Breweries, Deep Capital Management, and 20 others, contributed to the market’s decline.
Similarly, extending the impact of the earlier selloffs, the All-Share Index settled at 249,062.37, compared with 251,635.42 previously.
The Year-to-Date return dropped to 60. Still, market breadth stayed positive, with 41 gainers and 25 losers. Zichis Agro Allied Industries and ABC Transport each gained 9.99 per cent, settling at N32.04 and N8.26 per share.
Ja Paul Gold increased by 9.95 per cent, ending the session at N4.09; Livingtrust Mortgage Bank increased 9.92 per cent, closing at N4.21; and FTN Cocoa Processors gained 9.91 per cent, finishing at N10.76 per share.
On the losing side, BUA Cement decreased by 10 per cent, closing at N414. CAP decreased by 9.99 per cent, settling at N210.35, while E-Tranzact decreased by 7.03 per cent, finishing at N17.20 per share.
International Breweries decreased by 5.38 per cent, ending the session at N12.30, and Deap Capital Management decreased by 4.92 per cent, closing at N5.80 per share.
Market activity declined as total volume traded dropped by 14.74 per cent to 600.22 million shares, valued at N32.72 billion across 58,958 deals.
Access Corporation led trading with 55.96 million shares, 9.32 per cent of total volume.
Zenith Bank led with N4.81 billion in transactions, 14.69 per cent of the total market value.
The Managing Director of Globalview Capital Ltd., Mr Aruna Kebira, linked the market decline to profit-taking in oil and gas equities. He said the earlier rally stemmed from concerns about the Strait of Hormuz affecting supply and prices, and that the current pullback reflects those concerns.
Kebira said that reports of Iran allowing passage through the Strait, along with ongoing talks involving the US and China, eased market concerns.
He said this development affects oil futures prices, shaping investor sentiment. Oil prices are driven by future expectations, so easing geopolitical tensions can trigger a pullback in oil-related equities.
Kebira concluded that despite the market’s decline, Seplat Energy’s resilience stood out, underscoring selective investor optimism in turbulent conditions.
