The Nigerian stock market experienced one of its most devastating trading sessions on Tuesday, November 11, as massive selloffs erased over N4 trillion in market value within a single day.
Market Carnage: The Numbers Tell the Story
Data from the Nigerian Exchange (NGX) revealed a catastrophic decline, with the All-Share Index (ASI) plummeting by 5.01% to close at 141,327.30 points, down from Monday's closing figure of 148,781.90 points. The market capitalization suffered an even more dramatic fall, dropping by N4.64 trillion to settle at N89.88 trillion.
The year-to-date return, which had been a source of investor optimism, collapsed to 37.31%, reflecting the severe deterioration in market sentiment that gripped trading activities throughout the session.
Bloodbath Across Trading Floor
The market downturn was widespread and brutal, with 59 out of 63 traded equities recording significant losses. Only four companies managed to escape the carnage with marginal gains.
Among the hardest hit were major blue-chip stocks that experienced the maximum allowable decline. MTN Nigeria crashed by exactly 10%, falling from N477.00 to N429.30 per share, representing a loss of N47.70 per unit. BUA Cement followed the same disastrous pattern, dropping from N180.00 to N162.00 per share.
Other notable decliners included Oando Plc, which fell from N40.00 to N36.00 per share, and Academy Press Plc, which also recorded a 10% decline. The selling pressure was so intense that even traditionally stable performers couldn't withstand the market onslaught.
Market Activity and Volume Analysis
Despite the massive value erosion, trading activity actually contracted significantly. Total market turnover declined by 30.89% to 364.35 million units, valued at N11.35 billion across 32,564 deals.
FBN Holdings emerged as the most actively traded stock by volume, with 68.27 million shares changing hands, valued at N2.11 billion. Access Corporation followed with 56.28 million shares worth N1.18 billion, while Zenith Bank recorded 41.92 million shares valued at N2.32 billion.
The few gainers in the market provided little consolation to overall investor sentiment. NCR Plc led the gainers with a 9.82% increase, rising from N19.35 to N21.25 per share. Berger Paints Plc managed a 2.56% gain, while FCMB Group recorded a modest 0.96% appreciation.
Broader Economic Context
The stock market crash occurred against the backdrop of continuing pressure on the Nigerian naira. Earlier reports indicated the local currency had depreciated slightly across foreign exchange markets, with the U.S. dollar quoted at N1,437.29 at the Nigerian Foreign Exchange Market (NFEM), compared to N1,436.57 on the previous Friday.
In the parallel market, the naira also weakened, trading around N1,450 against the dollar, adding to the general atmosphere of economic uncertainty that appears to have triggered the massive selloff in equities.
The dramatic single-day loss represents one of the most significant wealth destruction events in recent Nigerian market history and raises serious questions about the sustainability of the market rally that had characterized much of the year.
