The equities market reversed its recent bullish run on Wednesday as investors’ wealth fell by N1.619 trillion amid widespread selloffs in key mid- and large-cap stocks.

Selloffs in heavyweight and mid-cap stocks such as BUA Cement, CAP, E-Tranzact International, International Breweries, Deap Capital Management and 20 other stocks dragged the market lower.

Market capitalisation declined by 1.02 per cent, or N1.619 trillion, to close at N159.660 trillion from N161.279 trillion in the previous session. Similarly, the All-Share Index dropped by 2,573.05 points, also representing a 1.02 per cent loss, to settle at 249,062.37 compared with 251,635.42 recorded earlier.

The downturn weakened the Year-to-Date return to 60.05 per cent. However, market breadth closed positive with 41 gainers against 25 losers. Zichis Agro Allied Industries and ABC Transport led the gainers’ chart by 9.99 per cent each, settling at N32.04 and N8.26 per share respectively.

Also, Ja Paul Gold added by 9.95 per cent, ending the session at N4.09, Livingtrust Mortgage Bank increased by 9.92 per cent, closing at N4.21 while FTN Cocoa Processors gained by 9.91 per cent, finishing at N10.76 per share.

On the flip side, BUA Cement led the losers’ chart by 10 per cent, closing at N414, CAP trailed by 9.99 per cent, settling at N210.35 while E-Tranzact declined by 7.03 per cent, finishing at N17.20 per share. Similarly, International Breweries lost by 5.38 per cent, ending the session at N12.30 and Deap Capital Management fell by 4.92 per cent, closing at N5.80 per share.

Market activity declined during the session, as total volume traded fell by 14.74 per cent to 600.22 million shares, valued at N32.72 billion across 58,958 deals. Access Corporation led in trading volume with 55.96 million shares exchanged, representing 9.32 per cent of total volume.

Zenith Bank topped the value chart with N4.81 billion worth of transactions, accounting for 14.69 per cent of total market value.

Reacting to the market performance, the managing director of Globalview Capital Ltd., Mr Aruna Kebira, attributed the market decline to profit-taking activities, particularly in oil and gas stocks.

He explained that the earlier rally in oil and gas equities was largely driven by concerns over tensions around the Strait of Hormuz, which had raised fears of supply disruptions and pushed oil prices higher.

Mr Kebira, however, noted that reports suggesting Iran had allowed selective countries passage through the Strait, alongside ongoing diplomatic engagements involving the United States and China, had eased market concerns.

He said the development was impacting oil futures prices, which in turn affected investor sentiment toward oil and gas stocks. According to him, oil prices are largely determined by future expectations rather than spot prices, meaning any sign of easing geopolitical tensions could trigger a pullback in oil-related equities.

Mr Kebira added that in spite of the market decline, Seplat Energy continued to maintain gains, reflecting sustained investor confidence in the company.

(NAN)