Investors in the equities market have recorded losses amounting to N352bn following an eight-day losing streak witnessed on the Nigerian Stock Exchange.
The market capitalisation of equities listed on the NSE, which rose to N10.979tn on May 3 drop below the N11tn mark, has dropped consistently, closing at N10.627tn on Wednesday.
Wapic Insurance, Forte Oil and Champion Breweries Plc led the losers on Wednesday as their share prices dropped by 10 per cent, 9.87 per cent and 9.79 per cent, respectively.
The N51bn loss recorded on Wednesday dragged the market into its eighth consecutive day of losses.
The stock market closed on a negative note on Wednesday as sell-offs drove the All Share Index 0.48 per cent lower to 28,286.08 basis points, while the year-to-date loss dipped to –9.6 per cent.
Analysts at Afrinvest Securities said major price depreciation in Dangote Cement Plc, Union Bank of Nigeria Plc and United Bank for Africa Plc largely contributed to the bearish performance on Wednesday.
Consequently, activity level further declined as volume and value traded fell by 11.7 per cent and 22.8 per cent to 176.742 million units and N2.1bn, respectively.
The top traded stocks by volume were Access Bank Plc (35.8 million units), UAC Nigeria Plc (21.5 million units) and UBA (18.8 million units) while the top traded stocks by value were Guaranty Trust Bank Plc (N551.1m), Nestlé Nigeria Plc (N360.1m) and Zenith Bank Plc (N255.6m).
The performance across sectors was bearish as all indices trended southwards.
The industrial goods index led decliners, shedding 2.31 per cent following sell pressures in Dangote Cement and Cement Company of Northern Nigeria Plc.
Sell-offs in Wapic Insurance Plc and AXA Mansard Insurance Plc pulled the insurance index down by 1.01 per cent while the oil and gas index shed one per cent on the back of major share price depreciation in Forte Oil Plc.
The banking index closed 0.74 per cent lower due to losses recorded in Union Bank and UBA.
Profit-taking in Dangote Flour Mills Plc and Champion Breweries Plc dragged the consumer goods index lower by 0.07 per cent.
Investor sentiment weakened to 0.6x from the 1.3x recorded on Wednesday as 11 stocks advanced against 17 stocks decliners.
The top-performing stocks were Chams Plc, Associated Bus Company Plc and Thomas Wyatt Nigeria Plc with respective gains of 9.1 per cent, eight per cent and 7.4 per cent.
“We anticipate a possible rebound before close of the week as investors buy the dip for fundamental stocks with attractive entry prices,” analysts at Afrinvest said.