NGX loses ₦3.28trn as Dangote Cement, Presco lead sell-off
- Nigerian stocks fell 1.98 per cent on Thursday, wiping ₦3.28 trillion off the market.
- Dangote Cement and Presco each dropped 10 per cent as heavyweight shares were sold.
- An analyst blamed tight liquidity from funds tied up in the Dangote Refinery IPO.
Nigerian stocks fell sharply on Thursday, with the market losing ₦3.28 trillion in value as investors sold off heavyweight shares, especially in the industrial sector.
The Nigerian Exchange Limited (NGX) All-Share Index dropped 1.98 per cent to close at 249,710.59 points, down from 254,762.81 the day before. Market capitalisation fell to ₦162.13 trillion from ₦165.42 trillion on Wednesday, ending two straight sessions of gains.
The fall was led by Dangote Cement and Presco, which each lost 10 per cent to close at ₦1,341 and ₦1,656.80 per share. Wapic Insurance fell 9.91 per cent to ₦2, while Austinlaz and Lasaco Assurance each dropped 8.57 per cent to ₦2.24 and ₦1.60.
Losers outnumbered gainers 36 to 20. Every major sector closed in the red, with the Industrial Goods Index down 7.14 per cent and Insurance down 2.51 per cent. Banking slipped 0.66 per cent, Consumer Goods 0.14 per cent and Oil and Gas 0.04 per cent.
Despite the drop, trading was busier. Volume rose to 856.28 million shares worth ₦74.09 billion in 33,540 deals, up from 552.31 million shares valued at ₦37.46 billion in 33,047 deals on Wednesday. First Holdco accounted for more than half of the volume and value traded.
Why the market fell
Mr Tajudeen Olayinka, chief executive of Wyoming Capital and Partners, linked the decline to tight liquidity, saying money committed to the Dangote Petroleum Refinery initial public offering (IPO) has left less cash for other shares.
He said the squeeze has lasted a while and is still being felt even though the offer has closed.
Until new money comes into the market, it will be difficult to see anything meaningful in terms of price appreciation.
Olayinka said fresh capital inflows are needed before prices can rise meaningfully again.
What happens next
Analysts expect the market to stay sensitive to selling pressure in the near term. Buyers hunting for bargains in oversold heavyweight stocks could soften further falls.
For ordinary Nigerians, the drop mostly affects those with money in shares, mutual funds or pension funds invested in equities. It does not directly change pump prices, food costs or the naira rate.
