Lagos: The Nigerian Stock Market lost N2.280 trillion in value on Wednesday as profit-taking sent the market sharply lower.
Aggressive profit-taking in large- and mid-cap stocks like WAPCO, Zichis Agro-Allied Industries, Learn Africa, John Holt, and Consolidated Hallmark Insurance, coupled with declines in 39 others, drove the equities market deeply into negative territory.
Market capitalisation collapsed by N2.280 trillion, or 1.44 per cent, ending at N155.939 trillion—down sharply from N158.219 trillion the previous session.
The All-Share Index plunged by 3,554.05 points, or 1.44 per cent, to 243,132.61 from Tuesday’s 246,686.66, underscoring the market’s swift capitulation.
The market’s Year-to-Date (YTD) return slackened to 56.24 per cent. Meanwhile, market breadth worsened, with 44 losers outpacing only 15 gainers.
WAPCO led the losers’ chart by 9.97 per cent, closing at N307.90, Zichis Agro Allied Industries trailed by 9.82 per cent, settling at N29.20, while John Holt and Lafarge dipped by 9.80 per cent each, ending the session at N13.80 and N11.50 per share respectively.
Similarly, Consolidated Hallmark lost by 8.84 per cent, finishing at N6.19 per share.
On the other hand, Abbey Mortgage Bank led the gainers’ chart by 9.93 per cent, settling at N7.75; International Energy Insurance followed with 9.89 per cent, finishing at N6; and Triple Gee gained 9.80 per cent, closing at N4.37 per share.
Also, Universal Insurance advanced by 8.91 per cent, ending the session at N1.10, while Royal Exchange increased by 7.14 per cent, closing at N1.50 per share.
Trading surged as total volume jumped 28.42 per cent to 922.97 million shares worth N42.27 billion across 69,332 transactions.
Sterling Nigeria led the volume chart with 264.59 million shares, accounting for 28.67 per cent of total volume traded.
MTN Nigeria topped the value chart with transactions worth N17.61 billion, representing 41.67 per cent of the day’s total turnover.
Reacting swiftly to the downturn, Vice President of Highcap Securities, Mr David Adonri, warned that the market had hit a bearish phase amid scant price-sensitive information.
He said that with key events like full-year earnings and dividend distributions concluded, investors now lack an urgent incentive to take new positions.
“We are entering a bearish market now. There is no price-sensitive information or disclosure that could cause the market to rise.
“The full-year earnings announcements and dividend payments have already taken place,” he said.
Adonri added that the market typically slows from the end of April and usually regains momentum in August, following the release of half-year results and interim dividends by companies.s.
He clarified that some investors might be selling stocks to raise funds for the anticipated listing of Dangote Refinery and Petrochemicals, a factor influencing the current market trend.
He also clarified that the introduction of the T+1 settlement cycle was not responsible for the market decline, noting that weak demand was evident before its implementation.