Lagos: The Nigerian stock market halted its bullish rally on Monday after 14 consecutive sessions of gains, resulting in a loss of N1.365 trillion.
Profit-taking in stocks such as FirstHoldCo, Trans-Nationwide Express, United Bank for Africa, Access Corporation, Fidelity Bank, and 35 others caused the downturn.
Market capitalisation fell by 0.94 per cent, or N1.365 trillion. It closed at N143.969 trillion, down from N145.334 trillion.
The All-Share Index dropped from 225,722.49 to 223,602.29. This was a decline of 2,120.20 points or 0.94 per cent.
As a result, the Year-to-Date return stood at 43.69 per cent, and the market breadth closed negatively, with 40 decliners and 36 advancers.
Firstholdco, United Bank for Africa and Trans-Nationwide Express led the losers’ chart. Each dropped 10 per cent, closing at N67.50, N49.50 and N7.11 per share.
Similarly, Access Corporation dipped by 9.90 per cent, settling at N28.20, and Fidelity Bank dropped by 9.87 per cent, finishing at N20.10 per share.
CoAbbey Mortgage Bank topped gainers with a 9.26 per cent rise, closing at N5.90.Zichis Agro Allied Industries trailed by 8.91 per cent, finishing at N16.99, and Wema Bank gained by 8.80 per cent, settling at N34 per share.
Also, NPF Micro-finance Bank soared by 8.19 per cent, closing at N5.68, while WAPIC increased by 7.26 per cent, ending the session at N2.66 per share.
Meanwhile, market activity closed higher, with total traded volume rising 8.06 per cent to 678.17 million shares, valued at N44.14 billion across 83,838 deals.
Zenith Bank led the activity chart. It recorded the highest volume and value with 76.07 million shares worth N9.53 billion.
This was 11.22 per cent of the day’s total volume. It was also 21.60 per cent of the day’s total value.
Commenting on these trends, Mr Aruna Kebira, Managing Director of Globalview Capital Ltd., said market sentiment was influenced by United Bank for Africa’s latest financial results, which did not include a dividend payout.
He explained there had been strong expectations among some investors. These included assumptions about a significant increase in the bank’s share units. He said the absence of a dividend came as a surprise. It shaped investor reactions. Kebira noted that other major banking stocks, such as Access Corporation, Fidelity Bank and Stanbic IBTC, were also expected to release their results, with the market anticipating outcomes similar to UBA’s.
According to him, developments in one stock often trigger broader market reactions.
He said the large volume of UBA shares offered in the market, along with similar trends in other banking stocks, prompted some investors to sell their holdings.
He added, however, that such reactions were often temporary, expressing optimism that the market would stabilise and recover within a few trading sessions.
KeKebira attributed the development to the recent results. He also noted the absence of dividend payments. He noted regulatory forbearance may also have played a role in shaping the outcome.
