The Nigerian equities market lost N2.28trn in market capitalisation on Wednesday, marking its third consecutive decline. The All-Share Index dropped 3,736.05 points, or 1.51 per cent, to close at 243,132.61 points, pulling the year-to-date return down to 56.24 per cent. Market capitalisation fell to N155.94trn as large and medium-capitalised stocks declined sharply. Analysts at Cowry Assets Management Limited attributed the downturn to profit-taking in premium equities, naming MTN Nigeria Communications, Lafarge Africa, Nigerian Exchange Group, FBN Holdings, Nigerian Breweries, and Zichis Agro Allied Industry as key contributors. Investor sentiment remained weak, with the firm forecasting sustained bearish momentum due to ongoing sell-offs.
Market breadth ended negative, with 43 stocks declining against 15 advancing. Lafarge Africa led the losers, falling 9.97 per cent to N307.90 per share. Zichis Agro Allied Industry dropped 9.82 per cent to N29.20, while Learn Africa and John Holt both fell 9.80 per cent to N11.50 and N13.80 respectively. Consolidated Hallmark Insurance declined 8.84 per cent to N6.19. On the upside, Abbey Mortgage Bank gained 9.93 per cent to close at N7.75, International Energy Insurance rose 9.89 per cent to N6.00, and Tripple Gee and Company climbed 9.80 per cent to N4.37. Universal Insurance and Royal Exchange recorded gains of 8.91 per cent and 7.14 per cent, closing at N1.10 and N1.50 respectively.
Liquidity improved despite the downturn, with total traded volume rising 57.1 per cent to 922.97 million units valued at N42.27bn across 69,332 deals. Sterling Financial Holdings topped trading activity with 264.59 million shares traded worth N2.12bn. Access Holdings followed with 76.69 million shares valued at N1.83bn, Linkage Assurance traded 55.13 million shares worth N99.16m, VFD Group exchanged 35.46 million shares valued at N378.83m, and Ellah Lakes recorded 33.12 million shares valued at N34.29m. An analyst at Apt Securities and Funds Limited noted strong trading turnover amid bearish pressure, indicating that increased activity was driven largely by sell-side transactions.
Cowry Assets Management forecasts continued bearish momentum while listing specific stocks under profit-taking pressure, yet offers no explanation for why those same stocks were previously held. The sell-off in companies like MTN Nigeria Communications and FBN Holdings directly affects retail investors who may have timed purchases based on earlier positive sentiment. If analyst warnings are issued only after significant value erosion, their earlier assessments likely contributed to the very losses now being reported. This pattern suggests investors are reacting to advice that appears in hindsight, rather than receiving timely guidance.
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