Nigerian Exchange Continues Bearish Trend, Investors Lose N673bn

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.