Investors wealth plummets by n6 billion on profit taking
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Investors' Wealth Plummets by N6 Billion on Profit Taking
The Nigerian stock market witnessed a significant decline in investors' wealth yesterday, as the market capitalization of listed companies plummeted by N6 billion on profit taking.
The All-Share Index (ASI) shed 0.45% to close at 39,311.44 points, while the market capitalization of listed companies fell to N13.43 trillion from N13.49 trillion the previous day.
The profit taking was driven by a sell-off in blue-chip stocks, with many investors taking advantage of the recent rally to book profits. The banking sector was the worst hit, with the banking index declining by 1.14% to close at 333.44 points.
The top losers on the day included Zenith Bank, which fell by 2.14% to close at N24.50 per share, and Guaranty Trust Bank, which declined by 1.85% to close at N34.50 per share.
On the other hand, the consumer goods sector was the only gainer, with the consumer goods index rising by 0.45% to close at 1,444.44 points.
Despite the decline, analysts are optimistic that the market will recover soon, citing the strong fundamentals of the economy and the ongoing efforts to diversify the economy.
"We expect the market to recover soon, driven by the ongoing reforms and the improving macroeconomic environment," said a market analyst. "Investors should take advantage of the current correction to buy into quality stocks."
The Nigerian stock market has been on a rally in recent weeks, driven by the improving macroeconomic environment and the ongoing efforts to diversify the economy. However, the market has been experiencing volatility in recent days, driven by profit taking and concerns over the global economy.