The stock market closed on a negative note on Tuesday, reversing the gains from the previous trading session as investors lost N726 billion.
This followed a three-day bullish streak in the market.
The downturn was driven by selloffs in stocks such as Mutual Benefits, NASCON, Red Star Express, Austinlaz, SCOA, and 39 other declining equities.
Market capitalisation fell by 0.57 per cent, shedding N726 billion from an opening value of N126.583 trillion to close at N125.857 trillion.
Similarly, the All-Share Index declined by 1,130.87 points, or 0.57 per cent, dropping from 197,196.98 to close at 196,066.11.
This led to the Year-to-Date (YTD) return declining to 26 per cent.
Similarly, the market breadth closed negative, recording 44 losers against 33 gainers.
Nascon and Mutual Benefits Assurance led the losers’ chart by 10 per cent each, finishing at N147.60 and N4.59 per share, respectively.
Also, Red Star Express dropped by 9.94 per cent, ending the session at N28.55; Austinlaz fell by 9.88 per cent, settling at N3.74; and SCOA shed 9.85 per cent, closing at N27.90 per share.
On the other hand, Premier Paints led the gainers’ chart by 9.97 per cent, settling at N17.65. Conoil trailed by 9.95 per cent, closing at N204.40, and Sunu Assurances gained by 9.95 per cent, ending the session at N4.75 per share.
Daar Communications added by 9.84 per cent, finishing at N2.01, while Eterna soared by 9.56 per cent, closing at N51 per share.
Market activity was down for the day, with total volume traded down 2.06 per cent to 746.85 million, valued at N27.85 billion across 65,275 transactions.
Meanwhile, Access Corporation recorded the highest volume with 80.26 million shares traded, accounting for 10.75 per cent of the day’s total volume.
Zenith Bank recorded the highest value at N3.29 billion, accounting for 11.82 per cent of the day’s traded value.
Reacting to the development, the vice president of Highcap Securities Ltd., David Adonri, attributed the market decline largely to prevailing market forces.
Mr Adonri said more investors were currently selling stocks to take profits than those buying.
According to him, the trend is also linked to the near conclusion of the earnings season, as most listed companies have already released their financial results and proposed dividends.
He noted that the market typically slows after the earnings season.
Mr Adonri also pointed to the ongoing war in Iran as another factor exerting negative pressure on the market.
He explained that when tensions escalated last week and crude oil prices surged, investors increased their positions in petroleum stocks.
However, he said the recent decline in crude oil prices had reduced demand for those stocks.
Mr Adonri further noted that the potential disruption to global trade arising from the conflict might not favour the Nigerian economy, which is largely import-dependent.
According to him, any global inflation triggered by the war can filter into Nigeria through higher import costs.
(NAN)