The Nigerian Stock Exchange (NSE) continued its downward trend on Wednesday,, dropping 0.75% due to profit-taking.
The All-Share Index fell 220.65 points to close at 29,062.50, down from 29,283.15 the previous day. Market capitalization also decreased by N114 billion, closing at N14.992 trillion from N15.106 trillion.
Key Stocks Drive Losses
Profit-taking in medium and large-cap stocks drove the downturn. Major losers included MTN Nigeria, BUA Cement, Ecobank Transnational (ETI), UACN, and Dangote Sugar, which significantly impacted the market’s performance.
Market Breadth and Top Losers
The market closed with 11 gainers against 17 losers. Livestock Feeds and Sovereign Trust Insurance led the losers, each dropping 9.09% to 50k and 20k per share, respectively. DN Meyer fell 8% to 46k, ETI declined 7.69% to N7.20, and Fidson shed 5.45% to N2.60 per share.
Top Gainers Shine
Beta Glass topped the gainers, rising 10% to N64.90 per share. Cornerstone Insurance gained 9.43% to 58k, while GlaxoSmithKline climbed 7.14% to N6.00. Forte Oil increased 6.44% to N19, and Transcorp rose 4.85% to N1.08 per share.
Trading Activity Falls
Investors traded 360.08 million shares worth N2.83 billion in 4,345 deals, a 46% drop from Tuesday’s 666.78 million shares valued at N6.52 billion in 5,711 deals. Morison Industries led trading with 126.77 million shares worth N57.05 million, followed by Access Bank (52.47 million shares, N536.58 million) and United Bank for Africa (31.97 million shares, N274.10 million). Zenith Bank traded 31.55 million shares worth N674.03 million, and Transcorp moved 17.86 million shares valued at N19.01 million.
Analyst Outlook
Afrinvest Limited analysts noted the negative performance but predicted a rebound. “We expect bargain hunting to drive better results in upcoming sessions,” they said, suggesting investors may seize opportunities in undervalued stocks.
Economic Context
The NSE’s decline reflects broader economic challenges in Nigeria, including concerns over rising commodity prices and budget pressures. Investors remain cautious, but analysts see potential for recovery as market dynamics shift.
