Seplat Energy’s 8.30% Drop Leads Market Decline, NGX Down by N188 Billion

Nigeria’s equities market declined by 0.33 percent or N188 billion on Thursday following a drop in Seplat Energy Plc’s share price.

This downturn reflects ongoing challenges in stimulating buy-side activity on the Lagos Bourse.

Seplat Energy Plc, a major player in Nigeria’s energy sector, saw its stock price plummet from N3,794.90 to N3,480, a decrease of N314.90 or 8.30 percent.

Other losers included Ikeja Hotel, which shed 65 kobo or 9.29 percent from N7 to N6.35 a share. The Honeywell Flour Mills also dropped 29 kobo or 8.41 percent from N3.45 to N3.16 while Champion Breweries lost 25 kobo or 7.55 percent from N3.31 to N3.06.

At the close of trading, the Nigerian Exchange Limited (NGX) All Share Index (ASI) and Market Capitalisation, which stood at 99,802.06 points and N56.456 trillion respectively on the previous trading day, declined to 99,468.90 points and N56.268 trillion.

Investors exchanged a total of 296,731,688 shares worth N5.447 billion in 7,126 deals.

Fidelity Bank, Linkage Assurance, Access Holdings, Transcorp, and AIICO emerged as the most actively traded stocks during the session.

The stock market’s year-to-date (YtD) return also saw a decline, standing at 33.03 percent. Over the month, the market has decreased by 0.59 percent while this week’s performance showed a 0.55 percent drop.

Market analysts noted that the lack of substantial buy-side activity has been a significant factor in the recent downturn.

The decline in Seplat Energy’s share price underscores the broader challenges facing the Nigerian equities market, particularly in the energy sector.

As investors continue to navigate the complexities of the current market environment, the need for positive economic triggers and robust corporate performance becomes increasingly critical.

Market stakeholders will be closely monitoring developments in the coming weeks to gauge potential recovery signals and adjust their strategies accordingly.