Nigerian stock market loses $801 billion as profit-taking ends three-day rally

The Nigerian stock market closed lower on Wednesday, wiping $801 billion from investors’ wealth as renewed profit-taking ended a three-session winning streak..

The decline followed selling pressure in several large- and mid-cap stocks, including Nestlé Nigeria, BUA Foods, Mecure Industries, International Energy Insurance and UAC of Nigeria.

At the close of trading, the market capitalization of the Nigerian Stock Exchange fell by 0.51% to N158.318 trillion, compared to N159.119 trillion recorded in the previous session.

The benchmark All-Share index also fell 1,241.19 points, representing a decline of 0.51%, to 245,418.37 from the previous close of 246,659.56.

After the market decline, the year-to-date return fell to 57.71%.

Despite the bearish close, overall market breadth remained positive, with 37 stocks posting gains while 28 stocks closed in negative territory.

Unilever Nigeria, Cadbury Nigeria and Trans-Nationwide Express topped the winners list after each gaining 10%.

Unilever closed at N137.50 per share, Cadbury closed at N62.70, while Trans-Nationwide Express closed the session at N3.08 per share.

Thomas Wyatt Nigeria also rose 9.95% to close at N4.09, while UPDC Real Estate Investment Trust gained 9.40% to close at N12.80 per share.

On the losers’ side, Nestlé Nigeria and BUA Foods recorded the steepest declines, falling 10% each.

Nestlé Nigeria closed at N2,812.50 per share, while BUA Foods settled at N845.10.

Mecure Industries fell 9.94% to N69.30 per share, while International Energy Insurance fell 9.84% to close at N4.40.

Nigeria UAC also fell by 7.75% to close the trading session at N184.45 per share.

Trading activity, however, strengthened during the session as investors traded 1.25 billion shares worth N118.18 billion in 47,458 transactions.

Stock trading volume represented an increase of 34.34% compared to the previous session.

First Holdco dominated the market activity with 736.04 million shares valued at N80.81 billion changing hands.

The financial services company accounted for 58.76% of the total traded volume and 68.38% of the overall market value of the session.

The decline reflects renewed profit-taking in select large-cap stocks, despite more stocks closing higher during Wednesday’s trading session.