The Nigerian equities market lost about ₦1.97 trillion in market capitalization last week as investors took profits following the market’s strong recent rally.
The NGX All-Share Index fell by 1.6% to 243,052.74 points on Friday, from 246,992.44 points the previous week. Market capitalization also declined 1.24% to ₦157.587 trillion from ₦159.558 trillion.
The sell-off was broad-based, affecting banking, insurance, consumer goods, industrial and oil and gas stocks. The market recorded its steepest losses on Tuesday and Wednesday, when about ₦3.57 trillion was wiped off market value in two sessions.
Analysts attributed the decline mainly to profit-taking and portfolio repositioning ahead of the Dangote Petroleum Refinery IPO, which opened for subscription on Monday.
The offer involves 4.1 billion shares at ₦525 each, with a minimum subscription of 10 shares, and is expected to raise about ₦2.15 trillion. The offer closes on October 13.
Analysts said investors may be selling existing holdings to raise funds for the IPO, although the correction does not necessarily indicate a deterioration in the market’s fundamentals.
Despite the weekly decline, the NGX recovered modestly towards the end of the week, gaining 0.06% on Thursday and 0.28% on Friday as selected stocks attracted renewed buying interest.
The market is expected to remain volatile as investors weigh further profit-taking against the potential impact of the Dangote IPO and the market’s underlying fundamentals.
