The Nigerian equities market closed on a downturn yesterday as market capitalisation declined by N1.6 trillion, amid sustained sell pressure in many bluechip stocks. Data from the Nigerian Exchange (NGX) showed that market capitalisation depreciated to N159.66 trillion from N161.28 trillion, translating to a loss of about N1.6 trillion. The all-share index (ASI) fell to 249,062.37 points from 251,635.42 points, reflecting a broad-based downturn in equities.
Bluechip Stocks Drive Decline
The negative sentiment was largely driven by profit-taking in blue-chip stocks, with high-capitalisation counters accounting for the bulk of the market’s decline. BUA Cement led the losers’ chart after shedding 10.00 per cent to close at N414 while CAP Plc dropped 9.99 per cent to N210.35. eTranzact International, International Breweries, and First HoldCo also recorded notable losses of 7.03 per cent, 5.38 per cent, and 4.04 per cent, respectively.
Sectoral Performance Worsens
Sectoral performance mirrored the overall decline, with the NGX Banking Index easing to 2,410.13 points from 2,417.66 points, while the Industrial Index dropped to 12,189.48 points from 12,676.06 points. The consumer goods index also slipped to 4,940.59 points from 4,962.76 points, as sell-offs cut across major segments of the market.
Selective Gains in Mid and Small Caps
Despite the broadly negative outing, pockets of gains were recorded in mid- and small-cap stocks. Zichis Agro-Allied Industries Plc rose by 9.99 per cent to close at N32.04 kobo while ABC Transport gained 9.99 per cent to N8.26 kobo. Japaul Gold, LivingTrust Mortgage Bank, and FTN Cocoa also posted near double-digit gains, reflecting selective buying interest. However, these advances were insufficient to offset the losses in large-cap stocks, leaving the market firmly in negative territory at the close of trading.
Market Outlook
Reacting on market performance, the chief research officer of Investdata Consulting Limited, Ambrose Omordion said: “In the near term, investors are expected to focus on corporate earnings releases, dividend qualification dates, macroeconomic policy direction and sector-specific developments. Banking stocks are likely to remain actively traded as investors position ahead of further earnings expectations, while industrial and energy counters may continue to attract interest due to their strong fundamentals and defensive appeal.”
