Nigerian Stock Market Drops N599 Billion on Profit-Taking

The Nigerian stock market closed negatively yesterday, shedding N599 billion in market capitalization as investors engaged in profit-taking, particularly in Nestle Nigeria Plc and 39 other stocks. The All-Share Index saw a decrease of 927.70 points, a 0.38 percent loss, settling at 244,802.83 points.

The market's downturn was primarily influenced by price depreciation in large and medium-cap stocks, including Nestle Nigeria, Nigerian Aviation Handling Company (NAHCO), First Holdco, Nigerian Exchange Group, and Eterna. Out of the stocks traded, 13 advanced while 40 declined, indicating a weak market sentiment.

Despite the overall decline, some stocks saw gains. AVA Capital led with a 9.94 percent increase, followed by Livestock Feeds and Neimeth International Pharmaceuticals. AIICO Insurance and Oando also recorded modest gains. Conversely, Multiverse Mining & Exploration and LivingTrust Mortgage Bank were among the top decliners, each losing 10.00 percent.

Trading volume increased by 69.25 percent to 1.562 billion units, valued at N28.733 billion, with Japaul Gold & Venture being the most active stock. Looking ahead, analysts at Cowry Assets Management Limited anticipate a return to positive momentum, expecting half-year financial results to provide clearer direction and potentially renewed buying interest in fundamentally sound stocks.

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we expect the market to regain positive momentum as more listed companies release their half-year financial results. These earnings are expected to provide clearer direction for investor sentiment and could support renewed buying interest in fundamentally sound stocks.