Nigeria’s stock market closed in the red for the first time since the suspension of former Governor of the Central Bank of Nigeria, Godwin Emefiele, as investors decided to cash in on their gains following a recent two-day rally.
The downturn saw several prominent companies, including Access Corporation and Cornerstone Insurance, grappling with declining share values.
Access Corporation, one of the most actively traded stocks, faced a significant sell-off, causing its share price to plummet by N1.45 or 9.24 percent from N15.70 to N14.25. Similarly, Cornerstone Insurance suffered a substantial setback, with its share price dropping from N1.13 to N1.02, representing a decline of 11 kobo or 9.73 percent.
Thursday’s dip marked a missed opportunity for investors to consolidate the previous rally, which was primarily fueled by Emefiele’s suspension and the Central Bank of Nigeria’s decision to float the naira.
Despite the market’s recent positive momentum, the downward trend on Thursday impacted the Nigerian Exchange Limited All-Share Index and equities Market Capitalisation, causing them to decline from 59,985.10 points and N32.662tn, respectively, on Wednesday to 59,195.21 points and N32.232tn on Thursday.
The trading activities on Thursday witnessed investors exchanging 1,170,151,738 units valued at N15.359bn in 12,611 deals, reflecting a decline when compared to the previous day’s trading session.
This downturn came just a day after banks led the top gainers on Wednesday, a development analysts attributed to critical economic decisions made by the Bola Tinubu administration. Wednesday’s trading session saw the All-Share Index rise by 3.99 percent, closing at 59,985.10 index points, up from 58,163.55 index points recorded in the previous day’s session.
The market capitalisation also experienced an impressive appreciation, gaining N992bn and closing at N32.662tn, representing a 3.13 percent increase compared to the previous trading session’s N31.670tn.
International Breweries took the lead among gainers with a 10.00 percent increase, while Pharm Deko suffered a significant decline of -9.65 percent, leading the pack of losers.
UBA Plc emerged as the most traded equity by volume at the end of Wednesday’s session. Other notable gainers included Sterling, Transcohot, Dangote Sugar, and First Bank Nigeria Holdings, all achieving a 10 percent increase.
The market’s recent roller-coaster ride demonstrates the influence of both economic decisions and investor sentiment on Nigeria’s stock market. As the country navigates through economic shifts and policy changes, investors and analysts will closely monitor future market trends to make informed investment decisions.
