Nigerian stock market rally halts as blue chip sell-off triggers N639bn loss for investors
The previously surging stock market came to an abrupt halt yesterday – January 10, 2024, experiencing a downturn as profit-taking hit several blue-chip companies.
This resulted in investors facing a substantial loss of N639 billion.
Data obtained from the Nigerian Stock Market portal indicated that the market had been riding a six-day winning streak, accumulating gains of N3.941 trillion, driven by investor anticipation of year-end financial results and dividend declarations from listed companies.
However, the trend reversed yesterday, with the All Share Index (ASI) dropping from 83,191.84 points to 82,024.38 points, marking a 1.40 per cent decline.
The market capitalisation of listed equities also depreciated from N45.524 trillion to N44.885 trillion, reflecting the same 1.40 percent decline.
Key contributors to the losses were prominent companies such as MTN Communication Nigeria Plc (-4.41%), Zenith Bank Plc (-9.93%), and Guaranty Trust Company (GTCo) Plc (-8.71%).
The year-to-date (YTD) return took a hit, decreasing to +9.70 percent.
Sectoral analysis revealed a mixed market sentiment, with the insurance and oil and gas sectors experiencing declines of 6.1 percent and 0.4 percent, respectively.
On the positive side, the banking, consumer goods, and industrial goods sectors advanced by 8 percent, 2.5 percent, and 1.4 percent, respectively.
Breaking down the sectoral indices, Banking (+8.0%), Insurance (-6.1%), and Oil & Gas (-0.4%) recorded losses, while Consumer Goods (+2.5%) and Industrial Goods (+1.4%) indices saw gains.
Market activity analysis showed an increase in trade turnover compared to the previous session, with the value of transactions rising by 2.82 percent.
A total of 1.64 billion shares valued at N25.38 billion were exchanged in 20,223 deals.
Examining the price movement chart, Cornerstone Insurance led 49 losers with a 10 percent price decline, while Cadbury Nigeria Plc led 10 gainers with a 9.92 percent appreciation.
