Nigerian Stock Market Drops N1.67tn Before IPO Launch

On the previous day, the Nigerian stock market extended its downward trend, losing N1.67 trillion in market capitalization as it approached the Initial Public Offer (IPO) of Dangote Refinery. The All-Share Index fell by 2,579.01 basis points, or 1.05%, closing at 242,223.10 basis points.

This decline was attributed to price depreciation in large and medium capitalized stocks, including Nestle Nigeria, BUA Cement, Nigerian Breweries, Cadbury Nigeria, and Oando. This marked the second consecutive bearish session, reducing the year-to-date return to 55.66%.

Investor sentiment was negative, with 43 stocks declining compared to 11 that gained. Champion Breweries led the gainers with a 9.90% increase, while FTN Cocoa Processors and others led the losers' chart with a 10% drop.

The total volume traded decreased by 29.0% to 534.45 million units, valued at N22.28 billion across 46,943 deals. Cowry Assets Management Limited projected continued downward pressure on the market as investors liquidate positions ahead of the Dangote Refinery IPO, set to commence next week.