Losses recorded by BUA Cement, Sterling Financial Holding Company, Consolidated Hallmark Holdings, UPDC and The Initiates caused the Nigerian Exchange dipped on Tuesday.
The equity market lost N849bn underpinned on a 10 per cent dip in BUA Cement, Sterling Financial Holding Company (-9.85 per cent), Consolidated Hallmark Holdings (-10 per cent), real estate firm, UPDC and The Initiates (-9.79 per cent each).
At the close of trading, the market capitalisation declined to N55.87tn from N 56.72tn recorded on Monday.
The All-Share Index also shed about 1,551.76 points or 1.50 per cent to close at 102,108.05.
Analysts at Arthur Steven Asset Management Limited blamed the dip in the market on sell-offs observed in some securities on the exchange.
Tuesday’s trading activities were bearish, as only 14 gainers compared to 46 losers.
The value of traded equities tumbled by 60.70 per cent to N7.60bn, while the volume of trade also dipped by 41.28 per cent to 494.19 million.
The number of deals executed also reduced to 11,761 from 13,674 deals a day earlier.
Despite the bearish trend of the market, some penny to medium-priced securities managed to increase their values.
Juli Plc and Cadbury Plc gained 10 per cent each to close at N0.77 and N24.20, respectively.
Meyer Plc, Daar Communications, industrial goods company, Cap Plc, gained 9.94 per cent, 9.09 per cent and 4.58 per cent to close at N5.20, N0.84 and N25.10 per unit.
JAIZ Bank led the charts in terms of volume of trade with 90,78 million units worth N226.98m traded in 433 deals, followed by Universal Insurance with 40.40 million units valued at N16.64m exchanged in 186 trades.
Guaranty Trust Holding Company Plc and FBN Holdings had 32.95 million and 27.54 million units of their stocks valued at N1.32bn and N27.54m traded in 418 and 385 deals.
In the past few weeks, analysts had projected a pull-back in the capital market following the bullish rally in the market.
A stockbroker and the Executive Vice Chairman of Highcap Securities, David Adonri, in a chat with The PUNCH, said that the bullish run in the market was driven more by sentiments than economic fundamentals.
He added, “We only hope that the correction will be orderly when it starts.”