Investors Lose N2.05 Trillion In Three Days Amid Profit-Taking Activities

Investors Experience a N2.05 Trillion Loss Over Profit-Taking in Nigerian Stock Market

Investors in the Nigerian stock market recorded a significant loss of N2.05 trillion over a span of three days, driven by persistent profit-taking activities on the Nigerian Exchange (NGX).

As of Wednesday, the total market capitalisation—representing the combined value of equities listed on the NGX—dropped to N64.256 trillion compared to N64.302 trillion recorded on Monday.

Decline in Key Market Indicators

Similarly, the NGX All Share Index (ASI), another critical measure of market performance, fell by 3.2%, closing on Wednesday at 102,095.95 basis points, down from 105,451.06 basis points recorded on Monday.

Midweek Trading Shows Further Decline

On Wednesday, investors lost N931 billion in market capitalisation as it fell to N62.256 trillion, a decline from N63.187 trillion recorded the previous day. Additionally, the ASI dropped by 1.5%, settling at 102,095.95 points, down from 103,622.09 points on Tuesday.

Key Factors Contributing to the Decline

The significant sell-off in Dangote Cement, which saw its value plummet by 10%, heavily impacted the market. This sharp decline dragged the Year-to-Date (YTD) return to -0.8%, reflecting a less favorable performance for the year so far.

Trading Activities and Sectoral Performance

Trading Volume and Value:
The total trading volume decreased by 14.3%, with 431.30 million units exchanged at a total value of N9.26 billion across 11,908 deals.
Top-Traded Stocks:
- Most Traded by Volume: Universal Insurance with 70.31 million units.
- Most Traded by Value: BUA Foods with trades valued at N2.52 billion.
Sectoral Index Performance:
- Declines:
  - Industrial Goods Index: -4.7%
  - Insurance Index: -3.5%
- Gains:
  - Consumer Goods Index: +1.0%
  - Oil & Gas Index: +0.2%
- Banking Index: Closed flat.

Summary

The recent losses in the Nigerian stock market highlight the impact of profit-taking activities and sector-specific pressures, such as the decline in Dangote Cement. While some sectors showed resilience, the overall market sentiment remains cautious. Investors are advised to monitor market trends and adjust their strategies accordingly.

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Discover why investors lost N2.05 trillion in three days in the Nigerian stock market amid profit-taking activities. Explore the latest NGX market trends, sectoral performance, and key trading data.

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