NNFM, Vitafoam Lead Decliners as Market Capitalisation Drops by N152 Billion

The Nigerian stock market shed N152 billion in market capitalisation following widespread sell-offs in Northern Nigeria Flour Mills (NNFM), Vitafoam Nigeria, and 50 other stocks.

At the close of trading, the all-share index (ASI) fell by 249.42 points or 0.24 percent decline to settle at 103,398.82 points.

Market capitalisation dipped to N63.051 trillion, reversing gains recorded earlier in the year.

The downturn was primarily driven by losses in medium and large-cap stocks, including NNFM, Africa Prudential, Zenith Bank, and SUNU Assurance.

Analysts attributed the decline to cautious investor sentiment amid higher fixed-income yields.

Commenting on the market outlook, analysts at Vetiva Dealings and Brokerage said, “The ASI is off to a slower start this January, diverging from the 6.5 per cent gain recorded in the first week of 2024. Investor sentiment appears cautious, likely influenced by higher fixed-income yields. We anticipate selective buying to guide tomorrow’s market action.”

Market breadth closed negative with 19 stocks advancing while 51 stocks declined. Abbey Mortgage Bank and PZ Cussons Nigeria led the gainers’ chart, appreciating by 10 percent each to close at N3.63 and N27.50, respectively.

Learn Africa followed with a 9.90 percent increase, closing at N5.44.

NCR Nigeria gained 9.77 percent to close at N7.30 while Nigerian Exchange Group advanced 9.72 percent to N29.90.

In contrast, FTN Cocoa Processors, RT Briscoe Nigeria, and Veritas Kapital Assurance topped the losers’ chart with a 10 percent decline each, closing at N1.80, N2.70, and N1.53, respectively.

SUNU Assurance and Cornerstone Insurance fell by 9.98 percent each to close at N10.01 and N4.15, respectively, while Honeywell Flour Mills dropped 9.92 percent to close at N7.54.

Trading volume surged by 30 percent with 1.112 billion shares valued at N14.638 billion exchanged in 16,617 deals.

In terms of volume traded, FBN Holdings led with 161.46 million shares valued at N4.715 billion.

AIICO Insurance came second with 120.703 million shares worth N225.444 million while Tantalizers exchanged 104.762 million shares valued at N267.395 million.

Universal Insurance traded 93.811 million shares worth N78.058 million and Regency Alliance Insurance saw 47.325 million shares valued at N44.546 million traded.

Market analysts expect the cautious sentiment to persist in the near term with investors likely focusing on selective opportunities.

However, the broader market performance will depend on macroeconomic factors and corporate earnings reports.