Stock Market Reverses Gains, Investors Lose N648bn in One Day
- Nigerian stocks fell 0.41% as the All-Share Index dropped to 246,980.17 points, wiping N648 billion off investors' wealth on Wednesday.
- Cornerstone Insurance, Legend Internet, The Initiates, Guinea Insurance, and ABC Transport led the losers, while Lasaco Assurance, CNIF, and NEM Insurance topped the gainers.
- Investors traded 45 declining stocks against 23 gainers as profit-taking outweighed bargain hunting across the Nigerian Exchange.
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Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Nigeria's stock market closed lower on Wednesday as profit-taking across several counters triggered a broad sell-off, pulling the All-Share Index (ASI) down by 0.41% to 246,980.17 points from 247,984.55 points at the close of Tuesday's session.
Data from the Nigerian Exchange Limited (NGX) showed that market capitalisation fell from N159.992 trillion to N159.344 trillion, wiping roughly N648 billion from investors' wealth in a single trading day.
Source: Getty Images
Declining stocks outnumbered gainers by a wide margin, with 45 counters recording losses against only 23 that closed in positive territory. MTN Nigeria, Dangote Cement, Seplat Energy, Custodian Investment, and Julius Berger all ended the session flat.
Sectoral performance was broadly negative, weighed down by the sell-off in real estate, industrial and select banking names, even as insurance counters posted strong gains that partly offset the pressure elsewhere.
Top gainers
- Lasaco Assurance Plc gained 10.00%, rising from N2.20 to N2.42 per share.
- CNIF advanced 9.98%, increasing from N140.30 to N154.30 per share.
- NEM Insurance Plc gained 9.97%, climbing from N31.10 to N34.20 per share.
- SUNU Assurances Nigeria Plc rose 9.83%, moving from N3.56 to N3.91 per share.
- Prestige Assurance Plc added 7.14%, increasing from N1.40 to N1.50 per share.
Top losers
- Cornerstone Insurance Plc lost 10.00%, falling from N6.00 to N5.40 per share.
- Legend Internet Plc declined 10.00%, dropping from N4.50 to N4.05 per share.
- The Initiates Plc shed 9.91%, falling from N33.30 to N30.00 per share.
- Guinea Insurance Plc lost 9.78%, declining from N0.92 to N0.83 per share.
- ABC Transport Plc dropped 9.45%, slipping from N6.35 to N5.75 per share.
Source: Getty Images
Analysts expect market activity to remain mixed in the coming sessions as investors balance profit-taking with bargain hunting ahead of the release of more corporate earnings, Punch reports.
Otedola’s First HoldCo stake hits 20.42
Legit.ng earlier reported that Femi Otedola, Chairman of First HoldCo Plc, has deepened his hold over Nigeria's most valuable banking stock after buying an additional 680.8 million shares through a private placement, pushing his ownership to 20.42% and lifting the market value of his stake to roughly N1.05 trillion.
The acquisition was completed at N44 per share, a price below the company's July 18 closing figure of N61, according to market sources familiar with the deal.
Total spending on the new shares came to about N30 billion
Source: Legit.ng
