In a downward spiral, the Nigerian Exchange witnessed a setback as losses incurred by key players, including BUA Cement, Sterling Financial Holding Company, Consolidated Hallmark Holdings, UPDC, and The Initiates, led to a dip on Tuesday.
The equity market suffered an N849 billion loss, primarily fueled by a 10 percent decline in BUA Cement, followed closely by Sterling Financial Holding Company and Consolidated Hallmark Holdings, both experiencing drops of 9.85 percent and 10 percent, respectively.
This, coupled with losses from real estate firm UPDC and The Initiates, resulted in a noticeable downturn.
As the trading day drew to a close, market capitalization plummeted to N55.87 trillion from Monday’s N56.72 trillion, with the All-Share Index shedding approximately 1,551.76 points or 1.50 per cent to settle at 102,108.05.
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Arthur Steven Asset Management Limited analysts attributed the market dip to observed sell-offs, contributing to a bearish atmosphere where only 14 gainers were noted against 46 losers.
The value of traded equities took a nosedive by 60.70 per cent to N7.60 billion, accompanied by a 41.28 per cent decline in trade volume to 494.19 million. Additionally, the number of deals executed reduced to 11,761 from the previous day’s 13,674.
Despite the overall bearish trend, select penny to medium-priced securities managed to buck the trend. Juli Plc and Cadbury Plc each gained 10 per cent, closing at N0.77 and N24.20, respectively. Other notable gainers included Meyer Plc, Daar Communications, and Cap Plc, recording increases of 9.94 per cent, 9.09 per cent, and 4.58 per cent, respectively.
As anticipated by analysts in recent weeks, the market’s bullish run, largely fueled by sentiments rather than economic fundamentals, encountered a correction.
David Adonri, a stockbroker and the Executive Vice Chairman of Highcap Securities, expressed hope for an orderly correction, emphasizing the importance of market stability amidst fluctuations.