This picture taken on January 29, 2016 in Lagos shows 1000 naira banknotes, Nigeria's currency. - Nigeria's central bank governor, Godwin Emefiele, on January 26 dismissed calls to devalue the naira in his monetary policy committee statement. Instead he chose to continue propping up the currency at 197-199 naira to the dollar and maintain foreign-exchange restrictions. As a result, the naira on the black market is hovering around a record low of 305, fuelling complaints from domestic and foreign businesses who can't access dollars required for imports. (Photo by PIUS UTOMI EKPEI / AFP) (Photo by PIUS UTOMI EKPEI/AFP via Getty Images)
By David Akinmola
The Nigerian equities market reversed recent gains on Wednesday as sustained selloffs in Aradel Holdings Plc and Oando Plc triggered a decline in key market indicators, wiping N958.5 billion off investors’ portfolios.
At the close of trading, the market capitalisation of listed equities fell by N958.5 billion to close at N82.69 trillion, down from N83.65 trillion recorded in the previous trading session.
Similarly, the All-Share Index (ASI) depreciated by 1,513.91 points, or 1.18 per cent, to settle at 126,853.51 points from 128,367.42 points, reflecting renewed bearish sentiment across the market.
The downturn was driven primarily by profit-taking in highly capitalised stocks, particularly Aradel Holdings and Oando, which recorded significant price declines and weighed heavily on the benchmark index.
Market analysts attributed the pullback to investors locking in profits following the recent rally, while others repositioned their portfolios ahead of the release of half-year corporate earnings and interim dividend announcements.
Despite the decline, trading activity remained relatively robust, with investors exchanging millions of shares worth several billions of naira in thousands of deals across the major sectors of the market.
Although the oil and gas sector recorded the steepest losses, selective buying interest was observed in some banking and consumer goods stocks, helping to moderate the overall decline.
Market breadth closed negative as the number of declining stocks outpaced gainers, underscoring weak investor sentiment during the session.
Analysts said the market is likely to remain mixed in the near term as investors continue to balance profit-taking with bargain hunting in fundamentally sound stocks.
They noted that expectations of stronger half-year financial results, interim dividend declarations and improving macroeconomic indicators could provide support for the market in subsequent trading sessions.
However, they cautioned that elevated interest rates, inflationary pressures and global economic uncertainties may continue to influence investor behaviour, resulting in intermittent volatility on the Nigerian Exchange.
