Investors Lose N648 Billion as 45 Stocks Drop on Nigerian Exchange

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Nigerian equities fell 0.41% on Wednesday, wiping N648 billion from investors' wealth as 45 stocks closed lower on the Nigerian Exchange (NGX). The All-Share Index dropped to 246,980.17 points from 247,984.55 points at Tuesday's close.

Market capitalisation fell from N159.992 trillion to N159.344 trillion, according to data from the NGX. Declining stocks outnumbered gainers 45 to 23, as profit-taking outweighed bargain hunting across the exchange.

Top Losers and Gainers

Cornerstone Insurance Plc lost 10.00%, falling from N6.00 to N5.40 per share. Legend Internet Plc declined 10.00%, dropping from N4.50 to N4.05 per share. The Initiates Plc shed 9.91%, falling from N33.30 to N30.00 per share. Guinea Insurance Plc lost 9.78%, declining from N0.92 to N0.83 per share. ABC Transport Plc dropped 9.45%, slipping from N6.35 to N5.75 per share.

On the positive side, Lasaco Assurance Plc gained 10.00%, rising from N2.20 to N2.42 per share. CNIF advanced 9.98%, increasing from N140.30 to N154.30 per share. NEM Insurance Plc gained 9.97%, climbing from N31.10 to N34.20 per share. SUNU Assurances Nigeria Plc rose 9.83%, moving from N3.56 to N3.91 per share. Prestige Assurance Plc added 7.14%, increasing from N1.40 to N1.50 per share.

MTN Nigeria, Dangote Cement, Seplat Energy, Custodian Investment, and Julius Berger all ended the session flat.

Sectoral Performance and Outlook

Sectoral performance was broadly negative, weighed down by sell-offs in real estate, industrial and select banking names. Insurance counters posted strong gains that partly offset the pressure elsewhere.

Analysts expect market activity to remain mixed in the coming sessions as investors balance profit-taking with bargain hunting ahead of more corporate earnings releases, Punch reports.

In a related development, Femi Otedola, Chairman of First HoldCo Plc, deepened his hold over Nigeria's most valuable banking stock after buying an additional 680.8 million shares through a private placement. His ownership rose to 20.42%, lifting the market value of his stake to roughly N1.05 trillion. The acquisition was completed at N44 per share, a price below the company's July 18 closing figure of N61, according to market sources. Total spending on the new shares came to about N30 billion.

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