The Nigerian Exchange witnessed a downturn on Tuesday, with losses recorded across major players including BUA Cement, Sterling Financial Holding Company, Consolidated Hallmark Holdings, UPDC, and The Initiates.
The market saw a decline of N849 billion in market capitalization, marking a pivotal shift from the bullish trends of recent weeks.
The All-Share Index experienced a notable dip of 1,551.76 points or 1.50 percent, settling at 102,108.05.
Analysts at Arthur Steven Asset Management Limited attributed this downturn to sell-offs observed in various securities on the exchange, which triggered a wave of cautious trading sentiments among investors.
Trading activity on Tuesday remained bearish, with only 14 gainers compared to 46 losers. The value of traded equities plummeted by 60.70 percent to N7.60 billion, while the volume of trade also saw a significant decrease of 41.28 percent to 494.19 million.
Additionally, the number of deals executed dropped to 11,761, reflecting a decline from the previous day’s figures.
Despite the overall negative trend, some penny to medium-priced securities managed to buck the trend and saw an increase in their values. Juli Plc and Cadbury Plc notably gained 10 percent each, closing at N0.77 and N24.20, respectively. Meyer Plc, Daar Communications, and Cap Plc also experienced gains, closing at N5.20, N0.84, and N25.10 per unit, respectively.
JAIZ Bank led the charts in terms of volume of trade, followed closely by Universal Insurance, Guaranty Trust Holding Company Plc, and FBN Holdings. However, with analysts projecting a pull-back in the capital market following the recent bullish rally, concerns over the sustainability of the market’s upward trajectory persist.
David Adonri, a stockbroker and the Executive Vice Chairman of Highcap Securities, cautioned that the market’s bullish run may have been primarily driven by sentiments rather than economic fundamentals. He emphasized the importance of an orderly correction to maintain market stability moving forward.
As the market navigates these turbulent waters, investors are advised to exercise caution and stay vigilant amidst ongoing fluctuations.
Market Cap Suffers N849bn Loss As Key Players Dip
Analysts Warn Of Ongoing Correction
Latest from Business
Why World Bank Blacklists 58 Nigerian Companies, Persons For Corruption
In a move aimed at curbing corruption, the World Bank has blacklisted 58 Nigerian companies and individuals. This action prohibits them from engaging in any projects or operations funded by the World
Be Cautious On Monetary Policy Tightening As Businesses Are Yet To Recover From Previous Hikes, CPPE Tells CBN
Ahead of the Central Bank of Nigeria’s (CBN) Monetary Policy Committee (MPC) meeting later this month, the Centre for the Promotion of Public Enterprise (CPPE) has issued a plea for a cautious
Emirates Resumes Lagos-Dubai Flight Services October 1
Emirates Airlines has announced that it would resume flight services to Nigeria, starting with Lagos to Dubai from October 1, 2024.
Djibouti Forum 2024: Unveiling Economic Potential Sparks Global Interest
The inaugural Djibouti Forum concluded on a high note, igniting optimism among investors worldwide. Attended by nearly 400 delegates, including heavyweight institutional investors overseeing $2.5 trillion in assets, the event showcased Djibouti’s
Naira Bounces Back After 1 Week Depreciation, Hits 1,459.02/$1
The Naira showed resilience as it bounced back against the dollar at the end of Wednesday, recovering from a week-long depreciation in both official and unofficial foreign exchange markets. “I’m glad to