Nigeria’s Equity Market Declines By 0.35%, Investors Take Profit In Major Stocks

Nigeria’s equity market saw a dip of 0.35%, shedding N193 billion in value on Wednesday, marking the first negative close for September.

Investors began to take profits from some of the market’s major gainers year-to-date, resulting in a downward trend.

Major Stocks Lead the Decline

Oando Plc led the decline, falling from N91 to N81.90, a drop of N9.10 or 10%. RT Briscoe followed closely, dropping from N2.88 to N2.60, a decrease of 28 kobo or 9.72%.

Another significant loser was The Initiates, which saw its stock price fall from N2.01 to N1.81, down by 20 kobo or 9.95%.

One market analyst noted, “It’s not surprising to see profit-taking at this point, especially after the strong performance we’ve had in recent weeks. Investors are naturally cautious and are locking in gains while they can.”

READ ALSO: Nigeria’s Equity Market Shows Resilience, Investors Reap N45bn Gains Despite Profit-Taking

Analysts expected the Downturn

The market’s decline was not unexpected. Analysts had predicted that after several sessions of positive closes, a mix of cautious trading and selective buying would dominate.

“Keeping an eye on sector-specific movements and the ongoing tug-of-war between bulls and bears will be key to navigating the day’s trading opportunities,” said analysts at Vetiva Research in Lagos.

NGX All-Share Index and Market Capitalisation Drop

The Nigerian Exchange Limited (NGX) All-Share Index (ASI) fell from 96,873.74 points on Tuesday to 96,537.48 points on Wednesday.

Similarly, the market capitalisation dropped from N55.646 trillion to N55.453 trillion, reflecting the overall decline in the equity market.

Active Trading Day Despite Market Dip

Despite the market’s downturn, trading activity remained robust. A total of 389,232,448 shares worth N8.179 billion were exchanged across 12,039 deals.

Oando, Universal Insurance, Transcorp, FTN Cocoa, and GTCO were among the most actively traded stocks of the day.

Investors Remain Cautious

As the market navigates this period of adjustment, investors are expected to remain cautious. The recent downturn serves as a reminder of the volatile nature of the equity market, where gains can quickly turn into losses.

An analyst commented, “The key for investors now is to stay informed and be ready to act when market conditions change. This decline could either be a brief setback or the beginning of a broader trend. Time will tell.”

Nigeria’s equity market has started September with a mix of optimism and caution.

As investors continue to monitor sector-specific movements, the balance between buying and selling will determine the market’s direction in the coming days.