Nigerian Stock Market Declines 1.17% Amid Sell-off

On Tuesday, the Nigerian equities market recorded a bearish performance, with the benchmark All-Share Index declining by 1.17%, losing 2,897.67 points to close at 244,802.11 points. The overall market capitalization decreased by N1.878 trillion, ending at N158.722 trillion.

This negative performance was primarily driven by price depreciation in large and medium capitalized stocks, including MTN Nigeria Communications, First Holdco, UACN, CAP, and Zenith Bank. The market breadth showed a significant downturn, with 63 stocks losing value compared to only four gainers, indicating a broad-based selling pressure and a decline in risk appetite among investors.

Analysts attributed this sell-off to investors raising funds in anticipation of the Dangote Petroleum Refinery IPO, which opens on September 14 and closes on October 13. Imperial Assets Manager Limited indicated that market sentiment is expected to remain cautious, with investor focus on the IPO potentially drawing liquidity from existing stocks until its closure.