Nigerian Stocks Lose N439bn as Profit-Taking Weighs on Market

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Olori Uwem

Well-Known Member
Mar 18, 2024
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Nigerian Stocks Lose N439bn as Profit-Taking Weighs on Market

The Nigerian stock market extended its weekly losing streak, shedding ₦439 billion in market value as profit-taking by investors continued to pressure prices.

Key Market Highlights
• All-Share Index (ASI): Fell by 0.50% week-on-week, closing at 140,295.50 points.
• Market Capitalization: Dropped to ₦88.77 trillion, down from the previous week.
• Performance Trend: Month-to-Date return eased to +0.3%, while Year-to-Date still holds a strong +36.3%, showing the market remains positive overall.

Sectoral Breakdown

All major sectors closed lower:
• Banking Index: -1.2%
• Insurance Index: -1.0%
• Consumer Goods Index: -0.9%
• Industrial Goods Index: -0.4%
• Oil & Gas Index: -0.2%

This broad-based decline shows that sell-offs were widespread, not isolated.

Top Gainers

Despite the bearish mood, some stocks still recorded impressive gains:
• McNichols: +18.75% → ₦3.80/share
• NEM Insurance: +17.29% → ₦31.20/share
• Berger Paints: +15.31% → ₦36.90/share

Top Losers

The decliners’ table was led by:
• Secure Electronic Technology: -22.73% → 85 kobo/share
• Guinea Insurance: -19.77% → ₦1.42/share
• Lasaco Assurance: -13.29% → ₦3.00/share

Market Activity
• Total Turnover: 3.2 billion shares worth ₦85.4 billion in 142,477 deals.
• This was lower than the previous week’s 4.8 billion shares valued at ₦107.4 billion in 152,965 deals, indicating reduced participation and weaker investor sentiment.

Market Outlook

Analysts remain cautious but highlight possible positives ahead:
• United Capital Plc: Market may turn cautiously optimistic if the CBN cuts interest rates, supported by moderating inflation and stable FX.

• Cowry Asset Management: Expects a mixed week, with sell pressure in Banking and Industrial Goods but possible bargain-hunting in Consumer Goods and Insurance.

• Cordros Research: Notes that lack of strong catalysts will keep investors cautious in the short term, while macroeconomic factors (growth, inflation, yields) will shape medium-term sentiment.

✅ Takeaway for Investors:
• The market is currently in a profit-taking phase, creating short-term weakness.

• However, YTD returns remain strongly positive (+36.3%), showing the overall 2025 trend is bullish.

• Investors may consider selective buying opportunities in fundamentally strong stocks, especially those beaten down by recent sell-offs.