Nigerian Stocks plummet: N491bn wiped out in savage selloff

The Nigerian stock market concluded the trading week on a bearish note, with investors facing a substantial loss of N491 billion.

The downturn, the News Agency of Nigeria, reported, marked by a 0.64 percent decline in market capitalization, saw the total value drop from N76.453 trillion on Thursday to N75.962 trillion by Friday’s close.

Similarly, the All-Share Index fell by 776.92 points, or 0.64 percent, settling at 119,995.76 compared to the previous day’s 120,772.68.

The market’s negative performance was driven by significant selloffs in major stocks, including Legend Internet, BUA Cement, FTN Cocoa Processor, and Oando, alongside 28 other declining equities. The market breadth reflected this pessimism, with 32 stocks posting losses against 28 gainers.

Legend Internet led the decliners, plummeting 9.98 percent to close at N8.03 per share, while BUA Cement followed closely, dropping 9.92 percent to N95.40. FTN Cocoa Processor shed 9.76 percent, ending at N3.33, and Oando fell 8.72 percent to N56.50. McNichols also declined by 8.44 percent, closing at N2.17 per share.

Despite the downturn, some stocks bucked the trend. Neimeth Pharmaceuticals topped the gainers, rising 10 percent to close at N5.94 per share. Learn Africa and Mecure each advanced by 9.91 percent, settling at N5.10 and N12.20, respectively. Academy gained 9.44 percent to close at N5.10, while Smart Products Nigeria rose 9.09 percent to 60 kobo per share.

Trading activity saw a total of 625.78 million shares valued at N12.78 billion exchanged in 21,800 transactions, a decrease from Thursday’s 892.97 million shares worth N18.23 billion traded in 25,375 deals.

Ja Paul Gold dominated trading volume with 88.26 million shares valued at N192.04 million, followed by transactions involving 80.04 million shares worth N555.75 million. Access Corporation traded 56.02 million shares valued at N1.25 billion, Caverton moved 53.98 million shares worth N271.15 million, and Zenith Bank recorded 30.55 million shares valued at N1.76 billion.

The week’s bearish close reflects ongoing market volatility, with analysts attributing the selloffs to investor caution amid economic uncertainties.

The significant losses in key industrial and energy stocks like BUA Cement and Oando underscore broader market challenges, while gains in pharmaceuticals and education sectors signal pockets of resilience. As the Nigerian Exchange Limited (NGX) navigates these dynamics, investors await potential catalysts to restore market confidence.