Risk Aversion Wipes N1.32trn Off Stock Market, Capitalisation Falls To N155.13trn

Risk aversion dominated trading on the Nigerian equities market on Monday as investors lost N1.315 trillion, extending the market’s losing streak to a second consecutive session.

The bearish sentiment dragged the Nigerian Exchange (NGX) market capitalisation down to N155.130 trillion from N156.445 trillion, while the benchmark All-Share Index (ASI) shed 2,049.65 points, or 0.84 per cent, to close at 241,749.11 points.

The market downturn was driven by sustained sell-offs in large- and medium-capitalised stocks, including BUA Cement, NASCON Allied Industries, PZ Cussons Nigeria, Cadbury Nigeria and First HoldCo, reflecting a weakening of investor appetite for risk after a prolonged rally.

Commenting on market performance, Imperial Asset Managers Limited said the market’s second consecutive decline, coupled with a sharp deterioration in market breadth, underscores the cooling risk appetite that has emerged following a period of sustained gains.

Looking ahead, Cowry Assets Management Limited expressed optimism that the market could rebound on the back of strategic investor repositioning and portfolio rebalancing. However, it noted that continued profit-taking in recently appreciated stocks may moderate the pace of recovery.

Market breadth remained negative, with 44 stocks declining and 19 gainers.

Among the gainers, International Breweries led with a 9.77 per cent appreciation to close at N14.60 per share. Nigerian Aviation Handling Company (NAHCO) advanced 8.36 per cent to N177.00, while UACN gained 8.11 per cent to settle at N199.95 per share.

Also on the gainers’ chart, Daar Communications rose 6.67 per cent to N1.76, while Vitafoam Nigeria appreciated 5.87 per cent to close at N194.80 per share.

On the losers’ table, PZ Cussons Nigeria recorded the steepest decline, shedding 10 per cent to close at N81.00 per share. BUA Cement fell 9.99 per cent to N306.20, while Red Star Express dropped 9.98 per cent to N22.10 per share.

Similarly, R.T. Briscoe declined 9.70 per cent to N12.10, while C & I Leasing lost 9.38 per cent to close at N5.80 per share.

Despite the bearish close, trading activity improved, with total volume traded rising 18.7 per cent to 523.54 million shares, valued at N22.27 billion, in 59,945 deals.

FCMB Group emerged as the most actively traded stock by volume with 102.235 million shares worth N1.019 billion. It was followed by International Breweries with 26.764 million shares valued at N387.196 million, while Access Holdings traded 24.763 million shares worth N618.229 million.

McNichols recorded 20.262 million shares valued at N94.997 million, while Stanbic IBTC Holdings transacted 18.376 million shares worth N2.865 billion.