Onome Amuge
The Nigerian equities market experienced a pullback on Thursday, snapping a week-long bullish run, as investors incurred a N54 billion loss. The downturn was primarily driven by major sell-offs in bellwether stocks, most notably Seplat Plc, alongside a sharp decline in the newly listed Legend Internet Plc, which collectively weighed on overall market performance.
The benchmark All-Share Index (ASI) declined by 0.08 per cent, settling at 111,818.08 points, down from 111,902.61 points recorded the previous day. Consequently, the equity capitalisation fell to N70.51 trillion from N70.56 trillion posted on Wednesday.
Despite the negative close, market breadth remained positive, with 39 stocks advancing, 28 declining, and 61 remaining unchanged across 18,505 deals. This mild reversal, despite a positive number of gainers over losers, underscores the impact of profit-taking, as investors moved to lock in gains accumulated during the market’s recent rally. The decline ultimately reflected a reduction in investors’ wealth, reflecting a cautious shift in market sentiment.
“The market changed course after bullish streaks, closing in negative territory, as profit-taking in some blue-chip stocks, particularly SEplat, weighed on the overall market performance,” noted Atlass Portfolios Limited in an investor brief.
Seplat and Legend Internet lead declines
The most notable drags on the market came from Seplat Plc and Legend Internet Plc, both of which saw their share prices plunge by 10 per cent. Seplat closed at N4,964.40 from its previous N5,516.00 per share, reflecting substantial profit-taking in the oil and gas major. Similarly, Legend Internet Plc, a recent listing on the Nigerian Exchange, saw its price dip to N6.84 from N7.60, indicating a quick reaction from investors to secure gains or a re-evaluation of its recent market performance.
Other major decliners included Abbey Mortgage Bank Plc (down 9.90% to N6.19) and Oando (down 2.04%).
Bellwether companies experiencing sell pressure included STERLINGNG (-2.54%), GTCO (-0.72%), ACCESSCORP (-0.45%), and FIRSTHOLDCO (-0.20%). The top losers for the day, in percentage terms, were led by SEPLAT and LEGENDINT, both with -10.00% depreciation. Other notable decliners included OMATEK (-8.97%) and ELLAHLAKES (-5.71%).
Sectoral performance was mixed during the trading session. The Oil & Gas sector experienced a decline of 5.01 per cent, influenced by the slump in Seplat. The Insurance sector also edged down by 0.17 per cent, and the Banking index saw a 0.26 per cent loss. The Commodities index recorded a sharper decline of 1.36 per cent.
Conversely, the Consumer Goods sector advanced by 1.59 per cent, while the Industrial Goods sector gained 0.41 per cent. The industrial sector closed flat.
Despite the negative price movements in the overall market, trading activity remained positive. Total volume of trades increased by 8.65 per cent, and total value of trades rose by 0.30 per cent. Approximately 556.45 million units of shares, valued at N17.17 billion , were transacted across 18,505 deals.
Leading the activity chart by volume was United Bank for Africa Plc (UBA), which traded 82 million shares in 958 deals, accounting for 14.92 per cent of the total volume. It was followed by Fidelity Bank Plc (70 million shares, 12.76%) and Nigerian Breweries Plc (37 million shares, 6.72%).
In terms of value, UBA also led with stocks valued at N2.8 billion, representing 16.70 per cent of the total value of trades. Nigerian Breweries Plc followed with N2.1 billion in equities traded, and MTN Nigeria (MTNN) recorded shares valued at N2 billion.
Top performers defy trend
Despite the broader market decline, several stocks posted significant gains. Mutual Benefit Plc topped the advancers’ chart with a 10.00 per cent price appreciation, closing at N1.10. University Press (UPL) gained 9.98 per cent to N6.17, and Academy Press Plc rose by 9.88 per cent to N4.45. Other strong performers included SCOA (+9.62%), LIVESTOCK (+9.58%), and FTNCOCOA (+9.54%).
