Nigerian Exchange Market Plunges by N1.07tn in Single-Day Dip

The Nigerian Exchange Group experienced its most substantial single-day decline in January, shedding a N1.07 trillion on Wednesday.

This sharp dip is the third consecutive decline this year following a series of bullish trends witnessed earlier in January.

Market analysts attribute the downturn to widespread sell-offs across various sectors that triggered a notable retreat in investor confidence.

The previous day saw a considerable loss of N857 billion with the market capitalization closing at N56.43 trillion.

Earlier in the month, on January 10, the market incurred its initial loss of about N638 billion, indicating a prevailing trend of instability.

On the final trading day of January, both the market capitalization and All-Share Index plummeted by 1.89% to settle at N55.357 trillion and 101,154.45 points, respectively.

Despite the overall decline, certain stocks managed to buck the trend.

Tripple G, PZ Cussons, and Geregu Power emerged as gainers with Geregu Power notably sustaining its position on the gainers chart for the second consecutive day following the announcement of a N20 billion dividend for the 2023 financial year.

Conversely, May&Baker, Royal Exchange, and Sterling Financial Holding Company Plc led the losers’ chart, each shedding 10% of their value.

The volume and value drivers of the market were spearheaded by Transcorp Plc, United Bank for Africa, and Geregu with equities trading at 749.13 million units valued at N22.49 billion across 14,288 deals executed.

Analysts suggest that investors, particularly institutional ones, are capitalizing on profit-taking opportunities amidst market volatility, reflecting a cautious sentiment prevailing within the market.