Nigerian stock market sheds N1tn amid renewed bearish trading

Nigeria's stock market closed Tuesday's trading session on a bearish note, with a substantial decline in market capitalization. The Nigerian Exchange All-Share Index dropped by 1,806.18 points, or 0.73 percent, to settle at 246,723.57. Consequently, the overall market capitalization fell by N1.17 trillion, closing at N159.26 trillion.

The downturn was primarily attributed to widespread sell-offs in large and medium-capitalized stocks. Key companies that experienced price depreciation included MTN Nigeria Communications Plc, UACN, Dangote Sugar Refinery, Nigerian Aviation Handling Company, and First Holdco. This broad-based selling pressure led to the significant erosion of market value.

Despite the general decline in the market, the breadth of the market closed positive. This indicates that while major stocks were under pressure, a slightly larger number of individual stocks saw price increases. Specifically, 27 stocks gained while 26 stocks lost value. FTN Cocoa led the gainers, appreciating by 9.88 percent, followed by C&I Leasing and Sovereign Trust Insurance.

Trading activity saw a sharp spike, with the total volume of shares traded jumping by 270.4 percent to 3.91 billion units, valued at N32.38 billion, across 45,608 deals. Fortis Global Insurance dominated the trading activity chart, with 3.29 billion shares valued at N9.58 billion changing hands. This surge in trading volume suggests increased investor participation, even amidst the prevailing bearish sentiment.