The Nigerian Stock Market Takes a Hit with N140 Billion Loss

The Nigerian Exchange Limited (NGX) experienced a challenging start to the week, with significant losses in the stock market. A downturn in investor sentiment led to profit-taking activities in Dangote Cement Plc and 20 other companies, resulting in an overall market capitalization loss of N140 billion.

The NGX All-Share Index declined by 254.63 basis points or 0.34 per cent, closing at 73,768.64 basis points. This ultimately led to a drop in the overall market capitalisation value to N40.367 trillion.

The losses in Dangote Cement and Dangote Sugar Refinery Plc primarily drove this downturn, with declines of 2.19 per cent and 1.31 per cent, respectively. However, gains were observed in MTN Nigeria Communication Plc, which appreciated by 0.40 per cent, and Guaranty Trust Holding Company Plc (GTCO), with an increase of 0.50 per cent.

Despite the overall decline, market breadth closed on a positive note, with 40 stocks gaining relative to 21 decliners. Eterna recorded the highest price gain of 10 per cent, followed by AXA Mansard Insurance with a gain of 9.96 per cent. Other companies such as Multiverse Mining & Exploration, Infinity Trust Mortgage Bank, and Industrial and Medical Gas Nigeria (IMG) also saw significant increases in their stock prices.

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. These companies faced a more challenging trading environment.

In terms of trading volume, there was a 2.27 per cent increase to 432.914 million units, valued at N12.938 billion, and exchanged in 8,901 deals. Notably, Jaiz Bank, Transnational Corporations (Transcorp), Unity Bank, GTCO, and United Capital were among the most actively traded stocks.

While the stock market experienced a decline at the beginning of the week, it’s important to remember that market fluctuations are a normal part of the investment process. Investors should carefully assess the performance of individual stocks and make informed decisions based on their financial goals and risk tolerance.

It is advisable for investors to seek the advice of financial professionals and thoroughly research potential investment opportunities. A well-structured investment plan can help navigate fluctuations in the market and work towards achieving long-term financial objectives.