Nigerian stock market closes bearish as investors lose N491bn in one week, driven by major selloffs in BUA Cement, Legend Internet, and others

[dropcap]N[/dropcap]igerian stock market activity closed the week in the red, as investors suffered a loss of N491 billion by Friday’s close, highlighting ongoing volatility in the local equities space.

Also read: ‘Investment’ List of dividends announced in 2022, Nigerian Stock Exchange

Market capitalisation dipped by 0.64 per cent, closing at N75.962 trillion compared to N76.453 trillion recorded on Thursday.

The All-Share Index followed the same downward trend, shedding 776.92 points or 0.64 per cent to settle at 119,995.76.

This marked the first time in weeks the index dropped below the 120,000 mark, a psychological threshold for investors watching key price movements.

Analysts attributed the dip to significant selloffs in some of the market’s most active stocks, including Legend Internet, BUA Cement, FTN Cocoa Processor, and Oando.

In total, 32 stocks declined while only 28 made gains, indicating a negative market breadth at the close of trading.

Legend Internet topped the losers’ chart, dropping 9.98 per cent to close at N8.03 per share. BUA Cement followed with a loss of 9.92 per cent, finishing at N95.40.

FTN Cocoa fell 9.76 per cent to N3.33, while Oando declined 8.72 per cent to close at N56.50. McNichols also slipped 8.44 per cent to close at N2.17.

“This week’s close reflects a cautious sentiment among investors, especially around industrial goods and energy stocks,” said a market analyst with a Lagos-based investment firm. “There’s clear pressure from profit-taking after recent bullish momentum.”

However, a few equities managed to buck the trend. Neimeth Pharmaceuticals led the gainers’ chart, rising 10 per cent to N5.94.

Learn Africa gained 9.91 per cent to N5.10, while Mecure Pharmaceuticals closed at N12.20 after gaining 9.91 per cent. Academy Press and Smart Products Nigeria also recorded strong performances.

Trading activity also declined compared to the previous session. A total of 625.78 million shares were exchanged, valued at N12.78 billion, across 21,800 deals.

This was lower than the 892.97 million shares worth N18.23 billion recorded in 25,375 transactions previously.

Ja Paul Gold led in volume with 88.26 million shares valued at N192.04 million, followed by 80.04 million shares traded in another key equity at a total value of N555.75 million.

Access Corporation recorded 56.02 million shares worth N1.25 billion, while Caverton and Zenith Bank posted significant volumes with values exceeding N1 billion in trades.