The Nigerian stock market witnessed its highest daily loss in 2024 on Tuesday, signalling a potential correction after a persistent rally that pushed returns higher.
Investors moved into the market to take profit from recent gains, resulting in a loss of about N857 billion at the close of the trading session.
The Nigerian Exchange Limited’s (NGX) All-Share Index (ASI) and market capitalization decreased from the preceding trading day’s highs of 104,674.67 points and N57.282 trillion, respectively, to 103,110.15 points and N56.425 trillion.
The market declined by 1.50 per cent, marking its second negative close in 2024. Access Corporation led the laggards with a 10 per cent drop from N28 to N25.20.
Sterling Financial Holding Company and Caverton Offshore Support Group also recorded significant declines. The market’s year-to-date return stood at +37.89 per cent.
In 14,579 deals, investors exchanged 648,953,318 shares worth N11.086 billion. Japaul Gold, Transcorp, Access Corporation, UBA, and Oando stocks were among the most traded.
The stock market had maintained a bullish trend since the beginning of the year, with many large, mid-and small-cap stocks outperforming inflation.
Femi Otedola’s recent acquisition of Dangote Cement shares has been a significant factor influencing prices in the Nigerian stock market.
Despite the recent weak sentiment, analysts noted that the initial excitement in the stock market at the beginning of 2024 appears to be waning.
Otedola’s strategic move to acquire Dangote Cement shares reflects a focus on long-term wealth preservation, export potential, and shareholder value.
It remains to be seen how the market will respond in the coming days and whether the recent correction will lead to a shift in investor sentiment.
