The Nigerian stock market closed on a negative note on Tuesday, reversing gains recorded in the previous trading session as investors lost N726 billion in market value.
The downturn ended a three-day bullish streak in the market and was driven largely by selloffs in several equities, including Mutual Benefits Assurance, NASCON Allied Industries, Red Star Express, Austinlaz & Company and SCOA Nigeria, among 39 other declining stocks.
Market capitalisation fell by 0.57 per cent, shedding N726 billion from an opening value of N126.583 trillion to close at N125.857 trillion.
Similarly, the NGX All-Share Index declined by 1,130.87 points, or 0.57 per cent, dropping from 197,196.98 to close at 196,066.11 points. As a result, the Year-To-Date (YTD) return moderated to 26 per cent.
Market breadth also closed negative, with 44 losers compared to 33 gainers at the end of the trading session.
On the losers’ chart, NASCON Allied Industries and Mutual Benefits Assurance led with a decline of 10 per cent each, closing at N147.60 and N4.59 per share respectively.
Also, Red Star Express dropped by 9.94 per cent to close at N28.55, while Austinlaz & Company fell by 9.88 per cent to N3.74. SCOA Nigeria also shed 9.85 per cent, ending the session at N27.90 per share.
On the gainers’ side, Premier Paints Plc topped the chart with a 9.97 per cent increase to close at N17.65 per share. Conoil Plc followed with a 9.95 per cent gain to N204.40, while Sunu Assurances Nigeria Plc also rose by 9.95 per cent to N4.75 per share.
Other notable gainers included DAAR Communications Plc, which added 9.84 per cent to close at N2.01, and Eterna Plc, which appreciated by 9.56 per cent to close at N51 per share.
Market activity declined during the session, with total traded volume falling by 2.06 per cent to 746.85 million shares valued at N27.85 billion across 65,275 transactions.
Access Corporation recorded the highest trading volume with 80.26 million shares, representing 10.75 per cent of the total volume traded during the day. Meanwhile, Zenith Bank Plc recorded the highest value of traded stocks at N3.29 billion, accounting for 11.82 per cent of the day’s total value.
Reacting to the development, the Vice President of Highcap Securities Limited, David Adonri, attributed the market decline largely to prevailing market forces.
Adonri explained that more investors were currently selling stocks to take profits than those buying.
According to him, the trend is also linked to the near conclusion of the earnings season, as most listed companies have already released their financial results and proposed dividends.
He noted that the market typically experiences a slowdown after the earnings season.
Adonri also pointed to the ongoing tensions involving Iran as another factor beginning to exert pressure on the market.
He explained that when tensions escalated last week and crude oil prices surged, investors increased their positions in petroleum stocks. However, the recent decline in crude oil prices has reduced demand for those stocks.
Adonri further warned that potential disruptions to global trade arising from the conflict could negatively affect the Nigerian economy, which remains heavily dependent on imports.
According to him, any global inflation triggered by the conflict could filter into Nigeria through higher costs of imported goods.
