The Nigerian equities market opened the week in the red as the Exchange shed N112 billion on Monday.

Investors traded 774,377,516 shares worth N14.65 billion in 10,412 transactions during the trading session.

The market value of listed stocks and the all-share index rose by 0.24 percent to settle at N55.28 trillion and 96,205.85 points, respectively.

Eterna led the gainers with a 10 percent increase, closing the day at N33.00 per share. This was followed by Tantalizers, which also saw a 10 percent rise to N89.50. Oando and FTN Cocoa Processors appreciated by 9.95 percent and 9.93 percent, respectively, closing at N89.50 and N1.66.

On the other hand, Learn Africa led the losers with an 11.18 percent decline, dropping to N4.13 per share.

Julius Berger Nigeria followed, losing 10 percent to close at N153.45. Transcorp Power shed 9.99 percent to settle at N301.70, while McNichols dropped 9.4 percent to close at N1.35.

Further analysis showed that Jaiz Bank was the most traded stock in terms of volume, with investors transacting 247 million shares. Zenith Bank, FBN Holdings, and Guaranty Trust Holding followed with 173 million shares, 41.5 million shares, and 33.9 million shares, respectively.

Last week, the Exchange lost N83 billion as the All-Share Index and market capitalisation dipped by 0.15 percent due to sell-offs in big stocks.

Transcorp Power Plc on Monday extended its decline as the company’s directors offloaded their shares to increase liquidity.

The share dipped by 9.99% from N335.2 per share it opened the day to close at N301.7 a share.

Transcorp Power has been trading at about a 22% discount to its highest share price since listing, prompting investors to take profits before further potential market corrections.

The NGX now values Transcorp Power’s outstanding 7.5 billion shares at N2.262 trillion, down from its previous highs.

Market analysts believe this correction was inevitable, given the thin trading activity compared to the company’s substantial market value.

The drop is being viewed as a natural market adjustment, but the scale of the decline has left many investors and market watchers concerned about future movements in Transcorp Power’s stock price.

Despite the decline, Transcorp Power remains viable in the utilities sector, and the current market shake-up may present a buying opportunity for investors looking to capitalize on the lower price.

The company has yet to release an official statement addressing the stock decline, but market participants will be watching closely to see how Transcorp Power navigates this period of volatility.

Investors will also be keen to understand whether the company’s fundamentals can support a rebound in the near future, especially as the broader market faces challenges related to economic uncertainty and profit-taking activities.

The Nigerian equities market depreciated by N1.12 trillion between July and August 2024, as investors’ profit-taking persisted in some blue-chip companies listed on the Nigerian Exchange Limited (NGX).

The downward trend in the two months under review is coming on the backdrop of a hike in the Monetary Policy Rate, leading investors to divest into lucrative high yield Treasury Bills (T-Bills).

An investigation revealed that the market capitalisation in July 2024 dropped by N1.09 trillion or -1.92 per cent to close at N55.514 trillion from N56.602 trillion it opened for trading, while in August 2024, it dropped further by N36.04 billion or 0.06 per cent to close at N55.478 trillion from N55.514 trillion.

According to capital market analysts, investors in the local market sustained profit-take based on the sentiment, stressing that Nigeria’s capital market is still one of the best performing Exchanges in Africa and World at large.

However, investors’ returns between January and August 2024 stood at N14.56trillion, while average returns on investment stood at 29.16 per cent Year-till-Date growth.

The stock market had gained N15.68 trillion in the first half of (H1) 2024 as investors continued to invest in blue-chip companies.

Capital market analysts stated that the stock market performance eight months of 2024 is on the backdrop of mixed corporate earnings by listed companies, FG’s reforms in the foreign exchange market, among other factors.

Responding to market performance in eight months of 2024, the Vice President, Highcap Securities Limited, Mr. David Adnori stated that investors are trading based on sentiment.

He stated that the emergence of President Bola Tinubu further energised the stock market since market participants have hope in his ability to rejig the economy and implement economy-friendly policies.

Adnori, however, was optimistic that the stock may maintained its positive momentum in H2 2024, on the backdrop of banking sector recapitalisation and expected H1 2024 corporate earnings by most especially the banks listed on the Exchange.

Amid hike in Monetary Policy Rate to 26.75 per cent, capital market experts stated that its impact has created sentiment trading among investors who see fixed-income market as alternative investment opportunity to hedge against double-digit inflation.

Responding also, an Investment Banker & Stockbroker, Mr. Tajudeen Olayinka stated that the N14.56 trillion market capitalisation gain in eight months of 2024 tells us the presence of huge liquid funds in the hands of institutional investors who currently dominate activities in the stock market.