Heavy Sell-offs Hit Stock Market, Investors Lose N3.55trn In 2 Days

A sell-off in Nigerian equities has wiped out N3.55 trillion from the market’s capitalisation in just two trading sessions, as investors intensified profit-taking and repositioned their portfolios ahead of the highly anticipated Initial Public Offering (IPO) of Dangote Petroleum Refinery & Petrochemicals FZE.

The sharp decline has heightened concerns over near-term market volatility as investors prepare to participate in the landmark Dangote Refinery offer, which is expected to significantly reshape activity in the Nigerian capital market.

Trading yesterday extended the market’s negative run, with the All-Share Index declining by 2,579.01 points, representing a 1.05 per cent loss, to close at 242,223.10 points.

Similarly, the overall market capitalisation fell by N1.672 trillion to close at N157.050 trillion.

The latest decline brought the total market capitalisation loss over two trading sessions to N3.55 trillion, reflecting intensified sell pressure across major stocks as investors sought to free up funds and reposition ahead of the Dangote Refinery IPO.

The negative performance was driven largely by price depreciation in large and medium-capitalised stocks, including Nestle Nigeria, BUA Cement, Nigerian Breweries, Cadbury Nigeria and Oando.

Analysts at Cowry Assets Management Limited said the market could remain under pressure in the short term as investors continue to liquidate positions ahead of the Dangote Refinery IPO.

“The market is anticipated to remain under downward pressure as investors continue liquidating positions ahead of the Dangote Refinery IPO, which is set to commence at the start of the coming week,” the firm said.

Investor sentiment remained firmly negative yesterday, with 43 stocks recording losses against only 11 gainers, underscoring the broad-based nature of the sell-off.

Champion Breweries led the gainers’ chart, appreciating by 9.90 per cent to close at N11.10 per share. VFD Group followed with a 9.52 per cent gain to close at N11.50, while UPDC rose by 5.88 per cent to N3.60 per share.

Ikeja Hotel appreciated by 4.58 per cent to close at N44.50, while Cutix gained 3.06 per cent to close at N2.36 per share.

On the losers’ chart, FTN Cocoa Processors, Japaul Gold & Ventures, McNichols, Omatek Ventures, Secure Electronic Technology, Zichis Agro-Allied Industries and BUA Cement led the decline, each shedding 10 per cent.

They closed at N7.65, N2.34, N4.50, N1.35, 63 kobo, N15.39 and N278.10 per share respectively.

Cadbury Nigeria also declined by 9.94 per cent to close at N58.45 per share, while International Energy Insurance fell by 9.88 per cent to N2.28 per share.

Meanwhile, trading activity weakened, with total volume traded declining by 29 per cent to 534.45 million shares, valued at N22.28 billion and exchanged in 46,943 deals.

Mutual Benefits Assurance topped the activity chart with 75.336 million shares valued at N215.432 million.

Sterling Financial Holdings Company followed with 62.466 million shares worth N462.319 million, while Access Holdings traded 20.929 million shares valued at N562.963 million.

Zenith Bank recorded 16.821 million shares valued at N2.030 billion, while Guaranty Trust Holding Company (GTCO) transacted 16.740 million shares worth N2.145 billion.