Selling pressure brought the total capitalization down by N368 billion; therefore, the Nigerian stock market closed lower yesterday.
While total market value dropped to N87.416 trillion, the AllShare Index fell by 0.42 percent, losing 580.48 points to settle at 138,157.16.
The News Chronicle understands that the collapse was mostly caused by pricing drops in many blue-chip and mid-tier businesses, including Aradel Holdings, PZ Cussons Nigeria, CAP, Nigerian Breweries, and AXA Mansard Insurance. Analysts observe that these losses indicate low investor confidence and ongoing profit-taking, particularly in industries that have recently experienced growth.
Afrinvest Limited pointed out that, as investors remain cautious of persisting obstacles in the market, limited trading is likely to continue. This view draws attention to worries that selloffs driven by sentiment could, in the short term, magnify the negative momentum.
With only 14 gainers vs. 43 decliners, market breadth stayed negative, indicating strong selling dominance. Leading the gainers with a 9.09% increase to end at 96 kobo per share was Secure Electronic Technology.
While John Holt increased 7.94 percent to conclude at N6.80, Consolidated Hallmark Holdings followed with an 8.53 percent increase to N4.20. Cadbury Wema Bank moved 5.31 per cent to N20.80, while Nigeria climbed 5.45 per cent to end at N58.
DAAR Communications, Learn Africa, and Legend Internet each recorded 10 percent losses on the losers’ chart, closing at 90 kobo, N7.02, and N4.77, respectively. While Universal Insurance lost 9.60% to finish at N1.13, AXA Mansard Insurance dropped 9.95 per cent to N14.39.
Trading interest increased even though the general market was dropping. With 482.76 million shares traded worth N19.67 billion spanning 28,193 transactions, the total volume of shares traded increased by 19.34%. Access Holdings led the Activity chart with 43.03 million shares worth N1.1 billion.
Fidelity Bank followed with 40.12 million shares worth N843.8 million, while Guaranty Trust Holding Company (GTCO) traded 34.85 million shares worth N3.16 billion. AIICO Insurance registered 33.43 million shares worth N1.54 billion traded by United Bank for Africa (UBA). 29.08 million shares valued at N91.57 million.
