Nigerian Stock Exchange sheds N648 billion amid fresh wave of selling pressure on stocks

Nigeria's stock market experienced a reversal of fortunes on Wednesday, as a wave of profit-taking swept across key sectors, resulting in a significant loss of approximately N648bn for investors.

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This downturn was characterized by widespread selling, which overshadowed targeted buying interest in specific stocks, ultimately leading to a market breadth that was firmly in the red, with declining equities nearly doubling those that recorded price gains.

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The Nigerian Exchange All-Share Index fell by 0.41 per cent, dropping from 247,984.55 basis points at the start of trading to 246,980.17 basis points at the close.

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In line with the decline of the benchmark index, the total market capitalisation contracted from N159.992tn at the beginning of the session to N159.344tn by the end of the day.

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Market breadth ultimately closed on a negative note, with 45 stocks recording price declines, compared to 23 that saw price increases, underscoring the prevailing mood of profit-taking among investors.

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The downturn was led by Cornerstone Insurance Plc, which saw a 10.00 per cent decline from N6.00 to N5.40, and Legend Internet Plc, which also fell by 10.00 per cent to close at N4.05 from N4.50.

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Other notable decliners included The Initiates Plc, which lost 9.91 per cent to end at N30.00, Guinea Insurance Plc, which eased 9.78 per cent to N0.83, and ABC Transport Plc, which slipped 9.45 per cent to N5.75.

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Despite the overall bearish sentiment, insurance stocks continued to attract attention from bargain hunters, with Lasaco Assurance Plc leading the gainers, appreciating 10.00 per cent to move from N2.20 to N2.42.

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Other gainers included CNIF, which advanced 9.98 per cent to close at N154.30, NEM Insurance Plc, which climbed 9.97 per cent to finish at N34.20, SUNU Assurances Nigeria Plc, which gained 9.83 per cent to settle at N3.91, and Prestige Assurance Plc, which rose 7.14 per cent to close at N1.50.

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Major heavyweight stocks, including MTN Nigeria Communications Plc, Dangote Cement Plc, Seplat Energy Plc, Custodian Investment Plc, and Julius Berger Nigeria Plc, provided a buffer against further market decline by remaining unchanged for the session.

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Market analysts anticipate that trading will remain mixed in the near term, as investors weigh the benefits of profit-taking against the opportunities for bargain-hunting ahead of upcoming corporate earnings releases.