The Nigerian equities market declined by 1.36% last week, largely driven by losses incurred by prominent companies like PZ Cussons and Secure Electronic Technology.
The All-Share Index depreciated to 98,233.76 points while market capitalization shed 1.35% to close the week at N55.56 trillion.
PZ Cussons, a leading consumer goods company, experienced a significant setback, plunging by 26.97%.
Similarly, Secure Electronic Technology, known for its contributions to Nigeria’s electronic security sector, saw a notable decline of 16.95%. These losses, among others, contributed to the overall bearish sentiment in the market.
On the flip side, amidst the downturn, some equities managed to buck the trend and recorded gains.
Tantalizers, a prominent fast-food chain, led the pack with a remarkable surge of 27.78%. FTN Cocoa Processors and Presco followed suit, registering gains of 20% and 15.31%, respectively.
The trading volume and value also saw an uptick compared to the previous week. Investors traded 2.187 billion shares worth N50.667 billion in 45,277 deals, reflecting increased market activity.
The financial services industry emerged as the most active sector, contributing significantly to both volume and value of trades.
The United Bank for Africa Plc, Nigerian Breweries Plc, and Access Holdings Plc emerged as the top three traded stocks, collectively accounting for a significant portion of the total equity turnover volume and value.
Their performance underscored investor interest in key players across various sectors despite the prevailing market downturn.
This decline in Nigerian equities comes amidst broader economic challenges facing the country, including inflationary pressures, currency fluctuations, and lingering effects of the COVID-19 pandemic.
Also, uncertainties surrounding global economic trends and geopolitical tensions continue to impact investor sentiment and market dynamics.
The market downturn highlights the importance of diligent risk management and strategic investment decisions in navigating volatile market conditions.
Investors are advised to exercise caution and conduct thorough research before making investment choices, especially in light of the current market environment.
“Looking ahead to the coming week, mixed sentiment is anticipated in the market as bulls and bears vie for dominance, while market players remain attuned to corporate actions in anticipation of dividend income. Despite this, pockets of gains are expected as fiscal and monetary policies strive to steer the nation’s economy towards recovery, notwithstanding the forthcoming April 2024 CPI report and Q1 2024 Nigeria’s GDP report,” Cowry Asset analysts projected.