Nigerian Stock Market Extends Bearish Run as Investors Book Profits
The Nigerian stock market continued its downward trend on Wednesday, with the benchmark All-Share Index (ASI) declining by 0.06% to close at 194,370.20 points, down from 194,484.61 points recorded in the previous trading session. This bearish movement resulted in investors losing a substantial N73.45 billion in market value, while the year-to-date (YTD) return moderated to 24.91%.
Market Breadth Reflects Sustained Sell Pressure
Market breadth closed negative, with 54 decliners significantly outnumbering 22 gainers, indicating sustained sell pressure across key sectors. The losers' table was topped by Lotus Halal ETF, RT Briscoe Plc, ABC Transport Plc, and Skyway Aviation Handling Company Plc, while Jaiz Bank Plc, Okomu Oil Palm Company Plc, Transnational Express Plc, and Fortress Insurance Company Plc led the gainers' table.
Despite the overall market decline, trading activity showed notable improvement. Total volume rose by 19.32% to 1.36 billion shares valued at N45.36 billion across 69,642 deals, suggesting continued investor interest despite the bearish sentiment.
Top Performers and Decliners
Top 5 Gainers:
- Jaiz Bank Plc gained 9.95% to close at N14.03
- Okomu Oil Palm Company Plc rose 9.93% to N1,765.00
- Transnational Express Plc advanced 9.77% to N2.36
- Fortress Insurance Company Plc climbed 9.72% to N0.79
Top 5 Decliners:
- Lotus Halal Equity Exchange Traded Fund fell 10.00% to N178.65
- RT Briscoe Plc declined 10.00% to N10.35
- ABC Transport Plc dropped 10.00% to N6.75
- Skyway Aviation Handling Company Plc slipped 9.98% to N139.35
- Haldane McCall Plc shed 9.93% to N3.99
Trading Activity Highlights
Fortress Insurance Company Plc recorded the highest trading volume with 193.69 million shares, representing 14.27% of the day's total volume and valued at N152.66 million. Zenith Bank Plc posted the highest traded value at N11.07 billion, accounting for 24.40% of total value exchanged through 120.67 million shares.
Top Traded Stocks by Volume:
- Fortress Insurance Company Plc: 193.69 million shares valued at N152.66 million
- Zenith Bank Plc: 120.67 million shares worth N11.07 billion
- Japaul Gold & Ventures Plc: 114.77 million shares valued at N406.97 million
- Ellah Lakes Plc: 98.37 million shares worth N999.22 million
- Access Holdings Plc: 63.10 million shares valued at N1.69 billion
Zenith Bank Plc and Fortress Insurance Company Plc accounted for 8.89% and 8.46% of total volume respectively, while Guaranty Trust Holding Company Plc and Aradel Holdings Plc followed in traded value rankings.
Broader Banking Sector Context
The market decline occurs against the backdrop of ongoing banking sector reforms. The Central Bank of Nigeria (CBN) reviewed capital requirements for all banks in March 2024, setting a two-year deadline for compliance. While five banks have already met the new capital requirements, several others are still exploring ways to raise funds. United Bank for Africa Plc (UBA) has taken steps to meet the N500 billion benchmark for national commercial banks through various capital-raising initiatives.
The Nigerian stock market's performance reflects a combination of profit-taking activities by investors and broader economic factors influencing market sentiment. Despite the midweek decline, the improved trading volume suggests that investor interest remains active, with market participants closely monitoring both individual stock performances and broader economic indicators.
