Investors on the Nigerian Exchange Limited (NGX) lost N3.281 trillion on Thursday as widespread profit-taking in major equities brought the market’s two-session winning streak to an end.
The downturn, which affected Dangote Cement, Presco and several insurance stocks, pushed the exchange’s market capitalisation down by 1.98 per cent to N162.134 trillion from Wednesday’s N165.415 trillion.
Similarly, the All-Share Index shed 5,052.22 points, declining from 254,762.81 to 249,710.59 points.
The losses reduced the market’s year-to-date return to 60.47 per cent, while trading sentiment remained negative, with 36 stocks declining against 20 gainers.
Presco and Dangote Cement recorded the steepest losses, falling by 10 per cent each to close at N1,656.80 and N1,341 per share, respectively.
WAPIC followed with a 9.91 per cent decline to N2, while Austinlaz and Lasaco Assurance depreciated by 8.57 per cent each, closing at N2.24 and N1.60.
Despite the bearish performance, several equities recorded appreciable gains.
Computer Warehouse topped the gainers’ chart with a 9.94 per cent increase to N17.15, followed by Abbey Mortgage Bank, which advanced by 9.84 per cent to N6.70.
Honeywell Flour gained 9.82 per cent to close at N26.85, while Etranzact appreciated by 9.71 per cent to N18.65.
Caverton Offshore Support Group completed the leading gainers, rising by 8.96 per cent to N3.65 per share.
Meanwhile, trading activity strengthened despite the decline in market valuation.
Investors exchanged 856.28 million shares worth N74.09 billion across 33,540 transactions, compared with 552.31 million shares valued at N37.46 billion in 33,047 deals during the previous session.
First Holdco dominated trading, accounting for 478.42 million shares worth N44.94 billion.
The transactions represented 55.87 per cent of total shares traded and 60.66 per cent of the day’s turnover.
Reacting to the market downturn, the Chief Executive Officer of Wyoming Capital and Partners, Tajudeen Olayinka, attributed the selling pressure to liquidity constraints associated with the Dangote Petroleum Refinery initial public offering (IPO).
Olayinka explained that the capital committed to the offer had reduced funds available for investment in other listed equities.
He maintained that the liquidity pressure had persisted despite the conclusion of the IPO, limiting the market’s ability to sustain price increases.
“The equity market is not ready to recover so quickly. That is what is important,” he said.
“Until new money comes into the market, it will be difficult to see anything meaningful in terms of price appreciation.”
Olayinka stressed that fresh capital inflows would be essential to restoring liquidity and supporting a sustained improvement in share prices.
Ezeana Emmanuel
