A recent dip in the Nigerian stock market resulted in a loss of N259bn in market capitalization. BUA Cement topped the list of losing stocks, with its shares losing 10 percent in value.
This blog post provides:
- an overview of the companies affected by the decline
- and explores the market sentiments amid a positive investor outlook.
Nigerian Stock Market Overview
The Nigerian Exchange Limited which is the body overseeing the Nigerian stock market witnessed a decline in market capitalization on Monday, primarily driven by losses recorded in the equities of medium-cap companies. The market capitalization dropped by N259bn, with the All-Share Index also decreasing by 0.66 percent to N38.823tn and 70,946.83 respectively. This setback adjusted the year-to-date returns to 38.43 percent.
BUA Cement topped the list of losing stocks, with its shares losing 10 percent in value, closing at N93.60 per unit from N104. Other impacted stocks included Dangote Sugar (-0.43 percent), Lafarge (-0.17 percent), Oando Plc (-2.12 percent), Fidson (-3.53 percent), NGX Group (-0.68 percent), Zenith Bank (-0.43 percent), and United Bank for Africa (-0.23 percent).
Positive Outlook of the Market
Despite the decline in the Nigerian stock market, market sentiments remained positive, resulting in 33 gainers and 26 losers. Thomas Wyatt, a paper company, led the gainers’ chart with a 10 percent increase in share value, while First Bank of Nigeria Holdings gained 9.93 percent, Daar Communications gained 9.68 percent, DEAP Cap’s shares rose by 9.68 percent, and Neimeth gained 9.63 percent.
On the other hand, McNichols’ shares lost 9.33 percent, followed closely by BUA Cement’s 10 percent decline. Additionally, Computer Warehouse Group lost 7.50 percent, Mutual Benefit lost 7.14 percent, and real estate firm UPDC dipped by 7.14 percent.
Transaction volume on the local bourse slightly declined to 358.53 million units, valued at N7.10bn in 6,433 deals. A total of 121 stocks were traded during the Monday trading session.
Across sectors, three out of five sectors experienced losses. The Insurance, Oil/Gas, and Industrial Goods indexes recorded losses of 0.28 percent, 0.01 percent, and 4.21 percent, respectively. However, the Banking and Consumer Goods sectors advanced by 0.01 percent and 0.06 percent.
Cowry Asset Management Limited researchers projected a dynamic and multifaceted landscape for investors as they anticipate profit-taking and corrections following the recent market surge. This week, investors will closely monitor global events, fixed-income yields, and CBN policies to make informed decisions.
Read Also: Investors In Nigeria Lose N16 Billion In Stock Market
While the recent decline in the Nigerian stock market poses minor challenges, market sentiments remain positive, indicating the resilience of investors and their confidence in the long-term growth potential of the market.
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