The Nigerian stock market started the month of November on a bearish note, with heavy sell pressure leading to a significant drop in market capitalization. The overall market value shed N246 billion as 37 stocks, led by Aradel Holdings Plc, recorded losses.
The benchmark All Share Index (ASI) declined by 387.35 points, representing a fall of 0.25 per cent, to close at 153,739.11 points. Consequently, the total market capitalization closed lower at N97.583 trillion.
Market Drivers and Analyst Outlook
The downturn was primarily driven by losses in medium and large-cap stocks, including Aradel Holdings, Northern Nigeria Flour Mills (NNFM), Unilever Nigeria, Honeywell Flour Mills, and Dangote Sugar Refinery.
Market breadth reflected the negative sentiment, with 37 declining stocks overshadowing the 19 gainers.
Cowry Asset Management Limited analysts anticipate a mixed near-term trading environment, with market direction dependent on:
Investor reaction to fixed-income yields.
The rotation of funds into safer assets.
The outcome of the ongoing earnings season.
The firm noted, “The market currently needs a strong catalyst, possibly in the form of improved macro indicators or stronger-than-expected corporate results, to reignite a bullish spark and restore positive sentiment on the NGX.” They advised investors to position themselves in fundamentally sound stocks with strong earnings power.
Top Performers and Laggards
Category Top Stock Price Change Closing Price (₦)
Top Gainer Union Dicon Salt +9.93% 7.75
2nd Gainer Omatek Ventures +9.92% 1.33
3rd Gainer Nigerian Aviation Handling Company (NAHCO) +7.62% 113.00
Top Loser Honeywell Flour Mills -10.00% 18.00
2nd Loser Northern Nigeria Flour Mills (NNFM) -9.98% 84.30
3rd Loser Aradel Holdings -9.21% 710.00
Activity Chart
Total trading volume plummeted by 87.94 per cent to 627.503 million units, valued at N25.000 billion, exchanged in 36,425 deals.
The activity chart was dominated by financial sector stocks:
United Bank for Africa (UBA) topped the volume chart with 136.839 million shares (valued at N5.542 billion).
Aso Savings & Loans followed with 108.946 million shares.
Access Holdings traded 68.159 million shares.
Guaranty Trust Holding Company (GTCO) traded 49.829 million shares.
Zenith Bank sold 31.807 million shares.
