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#EndSARS Amid Curfews Plunge Stock Market by N113bn on Wednesday

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#EndSARS Plunges The Nigerian Stock Exchange by N113bn

The Nigerian Stock Exchange erased N113 billion in market value as the uncertainty surrounding #EndSARS agitation and government clampdown that reportedly claimed the lives of peaceful protesters at the Lekki Toll Gate weighed on investors sentiment.

Investors traded 326.58 million shares in 4,367 transactions during the trading hours of the day.

The Exchange closed in the red as 34 stocks led by Royal Exchange closed the trading session in the red.

The All-Share Index depreciated by 216.333 basis points or 0.75 percent from 28,665.82 bps recorded on Tuesday to settle at 28,449.49 bps on Wednesday while the market capitalisation of listed stocks dipped by N113 billion to N14.87 trillion, down from N14.98 trillion it closed on Tuesday.

Economic uncertainty ahead of likely third-quarter recession continued to hurt the Nigerian Stock Exchange, especially with the ongoing social unrest that has grounded business activities in the commercial capital of the nation, Lagos State.

The executive governor of the state, Babajide Sanwo-Olu, had imposed a 24-hour curfew on all parts of the state to curb the activities of criminals using peaceful protest to loot and destroy properties in the state.

However, the increase in unrest is expected to negatively impact on the nation’s foreign direct investment and COVID-19 recovery.

Further breakdown of Wednesday’s trading activities revealed that Wapic Insurance Plc led the gainers’ chart with a gain of 10 percent to settle at 44 kobo a unit share while Portland Paints Plc recorded 2.50 per cent gain to close at N2.05 as share.

UAC Property Plc came third with 1.23 percent to close at 82 kobo per share.

On the other hand, Royal Exchange Plc led losers’ table with 8 percent decline to close the day at 23 kobo as share while Neimeth Pharmaceuticals Plc followed with 757 percent to settle at N1.71 per share.

Union Dicon Plc came third at 7.41 per cent to close at 25 kobo per share.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Nvidia Stock Falls 13%, Biggest Three-Day Drop Ever Erases $430 Billion

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Nvidia Corp. shares entered correction territory on Monday, the biggest three-day value loss for any company in history.

The AI-focused chipmaker experienced a 6.7% drop, its largest one-day percentage decrease since April.

This marks the third consecutive negative session for Nvidia, culminating in a total three-day loss of approximately $430 billion from its market capitalization.

The stock’s 13% decline over the period surpasses the 10% threshold that typically defines a correction.

This dramatic drop has not only affected Nvidia but also weighed heavily on the semiconductor sector, with the Philadelphia Stock Exchange Semiconductor Index falling 3% on Monday.

Other notable declines included Broadcom Inc. with a 4% drop, Qualcomm Inc. down 5.5%, and ARM Holdings Plc slipping by 5.8%.

US-listed shares of Taiwan Semiconductor Manufacturing Co. also shed 3.5%.

This significant market shift has reduced Nvidia’s valuation below the $3 trillion threshold, positioning it behind both Microsoft Corp. and Apple Inc. in terms of market size.

Nvidia briefly held the title of the world’s largest stock last week before this downturn.

“In the near-term, it is plausible that investors begin suffering from AI-fatigue or become more broadly concerned about index concentration,” said Neville Javeri, portfolio manager and head of the Empiric LT Equity team at Allspring Global Investments.

Despite the recent slump, Nvidia remains one of the top performers of the year, with shares up nearly 140% year-to-date, making it the second-best performer among S&P 500 Index components, just behind Super Micro Computer Inc., another favored AI stock.

Earlier in the year, Nvidia faced a similar drawdown of about 20% but quickly rebounded to achieve all-time highs. The current downturn, however, has amplified concerns about the company’s valuation.

Nvidia trades at 21 times its estimated sales over the next 12 months, making it the most expensive stock in the S&P 500 by this measure.

Nevertheless, it continues to be well-regarded on Wall Street, with nearly 90% of analysts tracked by Bloomberg recommending a buy and an average price target suggesting about a 12% upside from current levels.

“The momentum in Nvidia and AI stocks in general has been staggering,” said Charlie Ashley, portfolio manager at Catalyst Funds. “In terms of investing, I would not be a contrarian right now.”

Nvidia’s rapid ascent, driven by high demand for its AI processing chips, has been a double-edged sword, fueling both optimism and apprehension among investors.

The stock’s recent performance underscores the volatile nature of the tech market and the ongoing debate about the sustainability of its high valuations amidst economic uncertainties.

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Nigerian Exchange Limited

Nigerian Equities Market Sheds N103 Billion in Three-Day Trading of Last Week

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In a brief yet impactful trading week marked by Eid-el-Kabir celebrations, Nigeria’s equities market closed in the red as the market shed a total of N103 billion in market capitalization.

Investors navigated through a condensed trading schedule that spanned just three days, with profit-taking activities predominantly affecting key sectors despite selective bargain hunting in others.

The Nigerian Exchange Limited (NGX) All-Share Index (ASI) closed the week at 99,743.05 points, reflecting a decline from the previous week’s high of 99,925.29 points.

Similarly, market capitalization dipped to N56.423 trillion, down from N56.526 trillion recorded in the preceding trading period.

Throughout the truncated trading sessions, the market experienced two days of negative closes, contrasting with one day of flat performance.

Analysts attributed the decline primarily to profit-taking activities across critical sectors such as insurance and banking, which overshadowed gains observed in oil & gas, consumer goods, and industrial stocks.

The NGX Oil & Gas Index saw a marginal decrease of 0.21 percent, while the NGX Banking Index dipped by 0.04 percent.

The NGX Insurance Index recorded the steepest decline, falling by 1.41 percent during the week.

On the other hand, the NGX Consumer Goods Index rose by 0.29 percent, and the NGX Industrial Index saw a modest increase of 0.10 percent.

Despite the downturn in market performance for the week, the year-to-date (YtD) return moderated to 33.39 percent, indicating a resilient overall performance in 2024.

Month-to-date (MtD), the market managed a slight uptick of 0.43 percent, underscoring the mixed sentiment and cautious trading observed among investors.

Market analysts and stakeholders emphasized the impact of profit-taking in driving the market’s decline and suggested that the upcoming weeks could see renewed activity depending on economic indicators and investor sentiment.

As Nigeria’s equities market continues to navigate various economic dynamics, stakeholders remain optimistic about potential recovery and growth opportunities amid evolving market conditions.

The holiday-shortened trading week underscored the volatility and resilience of Nigeria’s equities market, highlighting both challenges and opportunities for investors in the coming sessions.

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FBN Holdings, Fidelity Bank Lead Trades as Nigerian Stock Market Closes Flat

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For the first time in weeks, Nigeria’s equities market closed flat on Thursday as investors adopted a cautious approach, taking a “wait-and-see” stance.

Despite active trading in major stocks such as FBN Holdings, Fidelity Bank, Transcorp, Access Holdings, and AIICO, the market showed no significant movement.

On Thursday, investors exchanged 1,299,961,984 shares worth N25.326 billion in 8,364 deals on the Exchange.

However, the trading activity did not translate into a market shift.

The NGX All-Share Index (ASI) and Market Capitalisation, which stood at 99,842.19 points and N56.478 trillion on the preceding trading day, closed Thursday at 99,842.94 points and N56.479 trillion, respectively.

This static closure occurred despite notable performances from stocks like Champion Breweries and Chams, which rallied.

Conversely, Transcorp Hotels Plc, NEM Insurance, and Fidelity Bank topped the list of laggards.

“We anticipate a mixed trading session with potential buy-side pressure in key names that could steer the market to a green close,” stated analysts from Lagos-based Vetiva Research in their post-trading note. “Investors are expected to monitor movements in high-performing stocks as well.”

Related developments highlighted the challenges facing investors. Rising diesel prices have surged by 66%, hitting the Northeast hardest.

The Naira remains weak at the official market despite rising external reserves, and prime office tenants face dilemmas with dollar-rents surging 200% in Naira value.

The flat close on Thursday underscores the cautious sentiment prevailing among investors in Nigeria’s equities market.

The market’s performance continues to reflect broader economic uncertainties and investor strategies focusing on stability and risk management.

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