The Nigerian stock market returned to the bearish zone on Tuesday as investors lost N440 billion following a broad-based decline that saw 19 stocks closing in the red, against 12 stocks that posted gains.
Despite activity rising slightly during the trading hours of Tuesday with investors trading 249,911,758 shares worth N2.502 billion in 3,283 deals, compared to 103,266,202 shares valued at N2.139 billion that exchanged hands in 3,206 transactions on Monday, the Exchange still closed in the red.
As expected the banking index lost 17 basis points on -2.14%, -1.23% and -0.50% decline in the value of Sterling Bank, Fidelity Bank and Zenith Bank, respectively.
The consumer goods index shed 58 basis points as Guinness depreciated by 9.95% and NB lost 0.38%. The industrial index dipped 393 basis points following a 8.33% and 1.83% decline in Dangote Cement and Cutix.
The oil and gas index, however, closed in the green with a 56 basis points increase.
The Nigerian Exchange Limited (NGX) depreciated by 1.82% to settle at 43,461.6 index points, down from 44,269.43 index points recorded on Monday. The market value of all listed equities also declined to N23.672 trillion, representing a N440 billion depreciation from N24.112 trillion achieved on Monday.
The Exchange year-to-date return moderated to 1.74%. See the details of the top gainers and losers below.
Nigerian Exchange Returns to Red Zone, Equity Investors Lose N67bn
The Nigerian Exchange plunged back into the red zone on Thursday as equity investors incurred N67 billion in losses.
The downward trend was primarily attributed to widespread sell-offs observed across key sectors, including banking, insurance, and consumer goods.
The All-Share Index closed the trading session with a decline of 0.12 percent to settle at 101,239.10 index points while the market capitalization closed lower at N55.40 trillion.
Despite a brief respite earlier in the week, the market failed to sustain its positive momentum.
Year-to-date returns moderated to 35.39 percent, reflecting the volatile nature of recent trading sessions.
Trading activities remained subdued with a 16.43 percent decrease in traded volume to 252.9 million units.
Similarly, total traded value declined by 24.54 percent to N4.94 billion, accompanied by a 15.83 percent dip in total deals to 7,248.
Market breadth leaned towards negativity, with 22 gainers overshadowed by 28 losers.
The decliners included notable companies like Daar Communications, Wema Bank, and PZ Cussons, which collectively contributed to the bearish sentiment prevalent in the banking, insurance, and consumer goods sectors.
Nigeria’s Equities Market Rebounds, Gains N165 Billion Amid Investor Optimism
Nigeria’s equities market rebounded on Wednesday as gained N165 billion in value amid renewed optimism and strategic re-entry into undervalued stocks.
The recent downturn which plagued the market earlier in the week saw investors holding back amidst uncertainties surrounding fixed-income securities’ interest rates.
However, Wednesday’s rebound reflected a shift in sentiment as investors identified opportunities for lucrative returns in value stocks.
Key players such as BUA Cement and FBN Holdings spearheaded the market’s upward trajectory with notable gains observed across various sectors.
BUA Cement surged by 4.93% from N142.95 to N150 per share while FBN Holdings gained by 9.96% from N26.10 to N28.70 per share.
Despite these gains, Okomu Oil Palm experienced a decline with its share price dropping from N270 to N243, representing a 10% decrease.
The market’s positive performance defied earlier projections of a prolonged bearish trend. Analysts had anticipated a continuation of the subdued market activity due to prevailing uncertainties in the fixed-income segment.
Wednesday’s trading session saw increased activity, with investors exchanging 302,739,517 shares valued at N6.552 billion across 8,611 deals.
Active trading was observed in stocks such as FBN Holdings, Japaul Gold, Transcorp, Veritas, and GTCO.
The surge in the equities market reflects investors’ resilience and their confidence in the long-term prospects of Nigeria’s economy.
It also underscores the dynamic nature of the market, where strategic investments and timely interventions can yield substantial gains even in challenging times.
Honeywell Flour Mills, BUA Cement Lead Losers as Nigerian Market Dips N730bn
The Nigerian equity market continued its downward spiral as Honeywell Flour Mills and BUA Cement emerged as the top losers.
The All-Share Index (ASI) declined by 1.30 percent to settle at 101,060.67 points while the market capitalization plummeted to N55.298 trillion, representing a decline of N730 billion in just two consecutive trading days.
The bearish trend which commenced on Monday persisted as investors grappled with mounting concerns over economic uncertainties and global market dynamics.
Honeywell Flour Mills led losers with a 10 percent decline to close at N3.60 per share. Followed closely by BUA Cement’s 9.98 percent of its share value to settle at N142.95.
PZ Cussons also experienced a notable dip, posting a 9.75 percent loss to close at N27.30 per share.
The persisting sell-offs predominantly affected medium to penny stocks, with only eight equities managing to record gains amidst 43 losses.
Market analysts attributed the performance to a combination of factors, including ongoing global economic uncertainties, currency devaluation concerns, and profit-taking activities by investors.
The decline in trading activity was evident as the total volume and value of trades witnessed significant declines, reflecting a cautious approach by investors amid the prevailing market turbulence.
Despite the challenges, industry experts urge investors to remain vigilant and adopt prudent investment strategies to navigate the unpredictable market terrain, emphasizing the importance of diversification and long-term investment perspectives in mitigating risks and preserving capital in volatile market conditions.
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