Nigerian Stock Market Sees Negative Reopen with N140 Billion Dip
Following the recent two-day holiday in Nigeria to commemorate Christmas and Boxing Day, the stock market reopened with a noticeable decline. The overall market capitalisation experienced a decrease of N140 billion, primarily attributed to losses in Nestle Nigeria Plc and 20 other companies. The all-share index also saw a decrease of 254.63 points, representing a loss of 0.34 per cent, ultimately closing at 73,768.64 points.
The total market capitalisation value concluded at N40.367 trillion, marking a substantial loss of N140 billion. This negative performance in the market can be ascribed to price drops in large and medium capitalised stocks such as Nestle Nigeria, Okomu Oil, Dangote Cement, Stanbic IBTC Holdings, and UAC of Nigeria (UACN).
In regard to the future market performance, analysts at Vetiva Dealing and Brokerage foresee, “Market closed mixed once again, as the heavyweights continue to dampen sentiments. We expect a similar mixed session tomorrow, amid bargain hunting activities.”
On a positive note, market breadth concluded with 40 stocks gaining relative to 21 decliners. Eterna achieved the highest price gain of 10 per cent at N13.20 kobo, followed by AXA Mansard Insurance with a gain of 9.96 per cent at N5.19 kobo. Additionally, Infinity Trust Mortgage Bank, Industrial and Medical Gas Nigeria (IMG), and others experienced price increases.
Conversely, UACN led the losers’ chart with a 10 per cent decline, followed by DEAP Capital Management & Trust, Caverton Offshore Support Group, Royal Exchange, and Tantalizers.
The total volume traded increased by 2.27 per cent to 432.914 million units, valued at N12.938 billion, and exchanged in 8,901 deals. Notably, Jaiz Bank, Transnational Corporations (Transcorp), and Unity Bank were among the most actively traded stocks.
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