KEY POINTS
• Market capitalisation fell by N110 billion to N162.385 trillion as the All Share Index declined by 0.07 per cent.
• Trading volume dropped 22.85 per cent, while the value of transactions and number of deals also fell from the previous session.
• Thomas Wyatt Nigeria recorded the biggest loss, while Tripple Gee led the gainers.
MAIN STORY
The Nigerian stock market closed lower on Wednesday as profit taking across 31 equities pushed market capitalisation down by N110 billion.
Market capitalisation fell from N162.495 trillion at the opening to N162.385 trillion by the close, while the All Share Index declined by 176.75 points from 250,273.50 to 250,096.75.
The movement represented a 0.07 per cent decline in the benchmark index and took the market’s year to date return to 60.72 per cent.
The sell offs were led by Thomas Wyatt Nigeria, Sovereign Trust Insurance, Livingtrust Mortgage Bank, Neimeth International Pharmaceutical and Veritas Kapital Assurance, which recorded the biggest declines among the 31 losing equities.
Thomas Wyatt Nigeria posted the steepest fall, declining 9.74 per cent to N2.41 per share. Sovereign Trust Insurance fell 7.60 per cent to N2.31, while Livingtrust Mortgage Bank dropped 7.25 per cent to N3.20.
Neimeth International Pharmaceutical declined 4.61 per cent to N7.25, while Veritas Kapital Assurance lost 4.42 per cent to close at N1.08 per share.
The market recorded 23 gainers, led by Tripple Gee, whose share price rose 9.96 per cent to N3.09. Critical Minerals Financing Corp gained 9.86 per cent to N4.01, while Champion Breweries advanced 9.50 per cent to N10.95.
WAPIC increased by 9.24 per cent to N2.60, while Multi Trex Integrated Foods rose 8.33 per cent to close at 39k per share.
Trading activity also weakened compared with the previous session, with 446.99 million shares exchanged in 38,905 transactions valued at N22.95 billion.
The previous session recorded 579.25 million shares worth N36.07 billion in 41,072 deals. The latest figures therefore represented a 22.85 per cent decline in traded volume, alongside lower transaction value and fewer deals.
Zenith Bank remained the most actively traded stock, leading the market in both volume and value. A total of 34.90 million shares in the bank changed hands, representing 7.81 per cent of total market volume, while transactions in the stock were valued at N4.74 billion, equivalent to 20.69 per cent of total traded value.
THE ISSUES
- The market’s decline was relatively small compared with its cumulative performance for the year. Despite Wednesday’s 0.07 per cent fall in the All Share Index, the market retained a year to date return of 60.72 per cent.
- Trading activity weakened across all three measures reported by NAN. Investors traded fewer shares, the total value of transactions was lower and the number of deals also declined compared with the previous session.
- The market breadth remained negative because the number of declining equities exceeded those that gained. Thirty one equities lost ground against 23 gainers, reflecting the broader weakness across the session.
- Zenith Bank accounted for a significant portion of the day’s trading activity, with 34.90 million shares exchanged and transactions valued at N4.74 billion. It led the market by both volume and value during the session.
WHAT’S NEXT
Trading will resume in the next session, with investors monitoring market prices and trading activity following Wednesday’s decline.
BOTTOM LINE
Nigerian equities closed lower on Wednesday as profit taking pushed market capitalisation down by N110 billion. The decline came alongside weaker trading activity, although the market remained up 60.72 per cent year to date.
