…signals imminent correction
Nigeria stock market on Tuesday recorded its highest daily loss in 2024, a development which signals imminent correction after persistent rally pushed returns high.
Following news that the stock market will lose steam as fund managers mull sales, most stock investors moved into the market to take profit from recent gains. Stocks investors lost about N857billion at the close of trading session.
The market decreased by 1.50 percent on Tuesday, its second negative close this year after January 10 when it was down by 1.40 percent. Other trading days this year, the stock market closed in green.
The Nigerian Exchange Limited (NGX) All-Share Index (ASI) and Market Capitalisation decreased from preceding trading day’s highs of 104,674.67 points and N57.282trillion respectively to 103,110.15 points and N56.425trillion.
Access Corporation led the league of laggards after sell pressure pulled its price down from N28 to N25.20, losing N2.80 or 10 percent.
It was followed by Sterling Financial Holding Company which dropped from N7 to N6.30, after losing 70kobo or 10 percent.
Also, Caverton Offshore Support Group made the league of top decliners after its share price lowered from N2 to N1.80, losing 20kobo or 10 percent.
The market’s year-to-date (YtD) return stood lower at +37.89 percent at the close of trading on Tuesday.
Investors in 14,579 deals exchanged 648,953,318 shares worth N11.086billion. Japaul Gold, Transcorp, Access Corporation, UBA and Oando stocks were majorly traded on Tuesday.
The stock market has maintained a bullish trend since the start of the year across a majority of large, mid and small-cap stocks.
Most of these stocks have beaten inflation in their returns. Inflation Rate in Nigeria increased to 28.92 percent in December from 28.20 percent in November of 2023.
The initial stock market excitement that was prevalent since the start of the year 2024 seems to be waning, given the recent weak sentiment.
Femi Otedola has been the prime mover of prices in the Nigeria stock market, analysts noted.
The Nigeria’s billionaire investor recently acquired Dangote Cement shares, saying it underscores the company potential. He emphasised long-term wealth preservation, export potential and shareholder value in Dangote Cement share acquisition. The cement maker’s share price was unchanged at N763 per share on Tuesday.