Investors lose N267 billion as stock market gains are reversed

Nigerian Stock Market Slumps by N267 Billion as Investors Suffer Losses

The Nigerian stock market took a hit on Thursday, reversing some of the gains made in previous sessions. The market capitalisation fell by N267 billion, or 0.47 per cent, to close at N56.615 trillion, down from the opening of N56.882 trillion.

The decline was largely driven by selloffs in several blue-chip companies, including MTN Nigeria, Oando Plc, United Bank for Africa (UBA), Fidelity Bank, FCMB Group, Cadbury, and United Capital, among others. The All-Share Index also dropped by 0.47 per cent, or 464 points, to settle at 98,523.56 points, down from 98,987.42 points reported on Wednesday.

The Year-To-Date return fell by 31.76 per cent as a result of the decline. However, the market breadth remained positive, with 29 stocks advancing and 26 declining.

FTN Cocoa led the gainers’ list, surging by 9.82 per cent to close at N1.79 per share. Caverton led the losers’ list, plummeting by 9.83 per cent to close at N2.97 per share.

Trading activity also slowed down significantly, with the value of transactions dropping by 47.44 per cent. A total of 344.36 million shares worth N6.61 billion were exchanged in 9,005 deals, compared to 603.31 million shares worth N12.58 billion traded in 9,723 deals in the previous session.

UBA emerged as the most active stock in terms of volume and value, with 29.18 million shares worth N756.09 million traded.

Despite the decline, investors are advised to remain cautious and wait for signs of a turnaround before making any investment decisions.