Nigerian Stock Market Retreats as ASI Dips Below 149,000; ASO Savings Defies Downturn
The Nigerian equities market faced a bearish session on November 10th, with the benchmark All-Share Index (ASI) surrendering 742.91 points to close at 148,781.90. This 0.5% decline dragged the index below the psychologically significant 149,000 mark, signaling a cautious mood among investors.
A Day of Contraction and Contrast
Trading activity slowed to a crawl, reflecting the prevailing uncertainty. The total volume of shares traded plummeted to 364 million units, a sharp drop from the 527 million units exchanged in the previous session. Market capitalization also felt the pinch, receding to ₦94.5 trillion across 32,564 executed deals.
Yet, even on a red day, pockets of green emerged. In a classic tale of two markets, ASO Savings and DEAP Capital defied the broader downturn to become the session’s standout performers. ASO Savings surged by the maximum allowable 10.00%, while DEAP Capital followed closely with a 9.83% gain.
On the opposite end of the spectrum, Link Assurance and RT Briscoe led the decliners, both hitting the floor with a 10.00% loss.
Market Snapshot: The Numbers Behind the Movement
All-Share Index (ASI): 148,781.90
Previous Close: 149,519.6
Day’s Change: -0.50%
Year-to-Date Performance: +44.55%
Volume Traded: 364 million shares
Market Capitalization: ₦94.53 trillion
Top Gainers: Finding Opportunity in the Dip
While the overall trend was negative, several companies demonstrated remarkable resilience. The top five gainers for the session were:
- ASO Savings: +10.00% to close at ₦0.99
- DEAP Capital: +9.83% to close at ₦1.90
- Cornerstone Insurance: +8.70% to close at ₦6.00
- Neimeth International Pharmaceuticals: +8.65% to close at ₦5.65
- Japaul Gold: +6.70% to close at ₦2.23
Top Losers: Feeling the Selling Pressure
The list of decliners was led by insurance and automotive sectors, highlighting specific areas of investor concern.
- Link Assurance: -10.00% to close at ₦1.62
- RT Briscoe: -10.00% to close at ₦3.06
- Nigerian Aviation Handling Company (NAHCO): -9.95% to close at ₦95.00
- Mutual Benefits Assurance: -9.89% to close at ₦3.37
- AIICO Insurance: -9.89% to close at ₦3.37
Trading Activity: Who Led the Charge?
In terms of sheer volume, banking heavyweights dominated the activity charts. Access Corporation was the most traded stock with 22.8 million shares, narrowly edging out Zenith Bank, which saw 21.9 million shares change hands. Chams, ASO Savings, and AIICO Insurance completed the top five by volume.
When measured by the total value of transactions, industrial giant Dangote Cement took the crown with deals worth ₦2.15 billion. It was followed by Zenith Bank (₦1.3 billion), Lafarge Africa (₦1.02 billion), Aradel Holdings (₦644 million), and Guaranty Trust Holding Company (GTCO) at ₦519.9 million.
Large-Cap Stocks: A Mixed Bag for Market Pillars
The session was unkind to many of the market’s bellwether stocks. The category of Stocks Worth Over One Trillion Naira (SWOOTs) closed lower, with International Breweries falling 8.33% and Nigerian Breweries shedding 2.69%.
The banking sector’s elite, often referred to as the FUGAZ (First Bank, UBA, GTCO, Access, Zenith), also struggled for traction. UBA led the slide with a 4.88% drop, while Access Corporation, Zenith Bank, and GTCO posted more modest losses of 0.91%, 0.67%, and 0.59%, respectively. First Bank Holdings managed to hold its ground, closing flat for the day.
Market Outlook: Correction or Opportunity?
Analysts view the current pullback as a significant correction phase for the All-Share Index. The question on every investor’s mind is how deep it will go. If the current selling pressure persists, the index could test a key support level around 145,000.
However, the silver lining may lie in the recently released corporate earnings. As investors digest a slew of strong third-quarter results, sentiment toward fundamentally sound large-cap stocks could quickly improve. This potential shift in perspective might be the catalyst needed to halt the decline and spark a renewed upward trend, turning today’s caution into tomorrow’s opportunity.
Source: Original Article