Stock Market Drops by N1.65tn Ahead of Dangote Refinery IPO
Kayode Tokede The Nigerian stock market yesterday extended its downward trend, shedding N1.67 trillion by market capitalisation days to the Initial Public Offer (IPO) of Dangote Refinery. The All-Share Index
The Nigerian stock market experienced a sharp decline on the eve of Dangote Refinery's Initial Public Offer (IPO), shedding N1.67 trillion in market capitalisation. The All-Share Index dropped 2,579.01 basis points or 1.05 percent, closing at 242,223.10 basis points. The overall market capitalisation value fell by N1.67 trillion to N157.050 trillion.
The decline was primarily driven by a price drop in large and medium capitalised stocks such as Nestle Nigeria, BUA Cement, Nigerian Breweries, Cadbury Nigeria, and Oando. This marked the second consecutive bearish session, reducing the year-to-date return to 55.66 percent. Selling pressure was widespread, with heavyweight consumer and industrial companies contributing significantly to the market weakness.
Investor sentiment remained negative, with 43 stocks losing value compared to 11 that gained. Champion Breweries led the gainers with a 9.90 percent increase, closing at N11.10 per share, followed by VFD Group at 9.52 percent to N11.50, UPDC at 5.88 percent to N3.60, Ikeja Hotel at 4.58 percent to N44.50, and Cutix at 3.06 percent to N2.36.
On the losing side, FTN Cocoa Processors, Japaul Gold & Ventures, McNichols, Omatek Ventures, Secure Electronic Technology, Zichis Agro-Allied Industries, and BUA Cement all declined by 10 percent, closing at N7.65, N2.34, N4.50, N1.35, 63 kobo, 15.39, and N278.10 respectively. The total trading volume decreased by 29 percent to 534.45 million units, valued at N22.28 billion, with 46,943 transactions.
Mutual Benefits Assurance's shares saw the highest activity with 75.336 million traded, valued at N215.432 million. Other top performers included Sterling Financial Holdings Company with 62.466 million shares worth N462.319 million, Access Holdings with 20.929 million shares worth N562.963 million, Zenith Bank with 16.821 million shares worth N2.030 billion, and Guaranty Trust Holding Company (GTCO) with 16.740 million shares worth N2.145 billion.
Cowry Assets Management Limited forecasted that the market would continue to face downward pressure due to anticipated liquidations ahead of the Dangote Refinery IPO, which is scheduled to begin the following week.
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