Nigeria's domestic stock market recorded a sharp decline on Wednesday, with the index falling more than 2 percent. The midweek trade snapped a two-day winning streak, marking a reversal of the gains the market had built up in the previous sessions.
According to the trading figures, the all-share index dropped by 2.35 percent during the session. Despite the decline, the index managed to hold on to the 235,000 level, even as the broad sell-off weighed heavily on the market.
The fall had a significant impact on the overall value of the market. About 3 trillion naira was wiped out from the market capitalization in the course of the session, erasing the gains that had accumulated over the two preceding days of trading.
The decline was driven largely by two industrial heavyweights on the exchange. Dangote Cement, which carries a market capitalization of 16 trillion naira, and BUA Cement, with a market capitalization of 11 trillion naira, both closed the day down 10 percent.
The losses were not limited to the cement companies. Geregu Power was also among the stocks that fell, closing the session down 10 percent, adding to the pressure that pulled the market lower and put the bulls on pause.
Activity levels in the market also reflected the cautious mood among investors. The value of trades dipped by about 46 percent while volume was around 13 percent lower compared to the previous day, a big decline on low volume that may indicate that only a small group of investors were selling aggressively while the majority stayed on the sidelines.