Stock market records first downturn in 2024, as investors lose N639bn

The winning streak in the stock market was halted yesterday following profit taking in some blue chip companies, leading to a loss of N639 billion to investors.

The stock market, marked by a six-day rally driven by investor anticipation of year-end financial results and dividends declarations from listed companies, witnessed a shift yesterday. During this period, investors gained N3.941 trillion.

However, the positive trend was disrupted as the benchmark equities indicator, the All Share Index (ASI), dipped from 83,191.84 points to 82,024.38 points, reflecting a 1.40 percent decline.

Likewise, the market capitalization of listed equities decreased from N45.524 trillion to N44.885 trillion, representing a corresponding 1.40 percent decline.

A closer examination of the day’s trading revealed that the losses were influenced by the selloff in MTN Communication Nigeria Plc (down by 4.41%), Zenith Bank Plc (decreasing by 9.93%), and Guaranty Trust Company (GTCo) Plc (sliding by 8.71%).

As a result, the year-to-date (YTD) return saw a decrease to +9.70 percent.

Sectoral analysis indicated a mixed market sentiment, with two sectors experiencing declines and three showing appreciation. Specifically, the insurance and oil and gas sectors witnessed decreases of 61 percent and 0.4 percent, respectively. On the other hand, the banking, consumer goods, and industrial goods sectors saw advancements of 8 percent, 2.5 percent, and 1.4 percent, respectively.

Breaking it down by sectors, the Banking (+8.0%), Insurance (-6.1%), and Oil & Gas (-0.4%) indices registered losses, while the Consumer Goods (+2.5%) and Industrial Goods (+1.4%) indices showed gains.

Market activity analysis revealed a higher trade turnover compared to the previous session, with the value of transactions increasing by 2.82 percent. A total of 1.64 billion shares valued at N25.38 billion were exchanged in 20,223 deals.

On the price movement chart, Cornerstone Insurance led 49 other losers with a 10 percent price decline, while Cadbury Nigeria Plc, with a 9.92 percent appreciation, led 10 others on the gainers table.