The Nigerian exchange closed another day in the red as market capitalisation dipped by N673 billion on Wednesday.

The persistent downward trend has left stakeholders grappling with uncertainty and heightened volatility in the financial markets.

During midweek trading, the All-Share Index (ASI) endured a decline of 1.20% or 1,190.24 index points to settle at 98,121.30 index points.

Similarly, the market capitalization of listed equities plummeted by 1.20% to N55.494 trillion, this downturn further reduced the year-to-date return to 31.22%.

The Nigerian exchange has been mired in a bearish sentiment for weeks, marked by successive declines attributed to sell-offs driven by prevailing market dynamics and shifts in fundamentals.

Factors such as a high-interest rate environment and improved yields in alternative investment avenues have contributed to the sustained downward pressure on the exchange.

Despite the overall negative sentiment, there were more gainers than decliners, with 22 stocks recording gains compared to 19 stocks in the red. This shift in market dynamics was reflected in trading activity levels, with total deals and value experiencing gains of 7.96% and 22.10%, respectively.

However, traded volume witnessed a notable decline of 31.10% to 395.75 million units.

Sectoral performance exhibited a mixed trend, with the Banking and Insurance sectors posting losses due to sell-offs in key stocks such as FBN Holdings, United Bank for Africa, AIICO, and others.

Conversely, the Consumer and Industrial Goods sectors recorded marginal gains driven by positive sentiment in select stocks.

Guaranty Trust Holding Company Plc emerged as the most traded security in terms of volume and value, followed closely by Zenith Bank Plc. However, key stocks such as MTN Nigeria, Transcorp Hotels, Oando Plc, and FBNH experienced significant declines, contributing to the overall market downturn.

Nigerian stocks commenced the week on a positive note as the Exchange gained 0.17% in Monday’s trading session, with the banking sector spearheading the market rally.

The positive close pushed this year’s return to date to 33.34%, one of the highest in the world at the moment.

Analysts attributed the market’s positive momentum to increased investor interest in banking, insurance and industrial goods stocks.

This surge in buying activity follows recent widespread selloffs in the banking sector, presenting attractive opportunities for bargain hunters.

According to Vetiva Research analysts, the banking space witnessed significant bargain-hunting activity, indicating renewed confidence in the sector after previous weeks of sell-offs.

This sentiment propelled the overall market performance, with expectations of mixed trading sessions in the coming days as first-quarter earnings reports start to trickle in.

The Nigerian Exchange Limited (NGX) All-Share Index (ASI) and Market Capitalization reflected the market’s upward trajectory, appreciating from 99,539.75 points and N56.296 trillion respectively to 99,665.05 points and N56.367 trillion.

In total, investors exchanged 306,620,144 shares worth N5.300 billion in 8,298 deals.

Despite the positive market sentiment, analysts from Lagos-based United Capital Research cautioned that activities in the fixed income market could continue to deter equities investments.

However, they highlighted the potential for bargain-hunting activities, particularly in the banking sector, amidst the recent bearish trend.

Overall, the Nigerian equities market’s resilient performance underscores investor confidence and optimism, driven by strategic sectoral investments and expectations of improved corporate earnings.

Nigeria’s stock market closed the trading week ended Friday, April 12, with a decline of 1.09% following a downturn influenced by notable drops in the banking, insurance, and consumer goods sectors.

This shift resulted in a loss of about N638 billion for investors during the two-day trading week, which was shortened due to public holidays for Eid Mubarak.

The Nigerian Exchange Limited’s (NGX) All-Share Index (ASI) decreased from an opening high of 103,437.67 points to 102,314.56 points.

Meanwhile, market capitalization also dropped from N58.498 trillion to N57.860 trillion over the review period.

The market’s month-to-date (MtD) performance fell by 2.15%, and the year-to-date (YtD) return is now at 36.83%.

Futureview research analysts had previously forecasted a mixed performance in the equities market as investors adjusted their positions in anticipation of upcoming corporate actions and dividend payouts.

The analysts also predicted a possible shift in focus towards the fixed income market, which could influence short-term investment decisions.

While the market faced challenges this week, analysts expect a resurgence of buying interest driven by upcoming corporate actions and earnings reports, attracting investors looking to benefit from dividend payments.

Their recommendation to investors is to consider investing in high-quality stocks with strong fundamentals for potential returns.