The Nigerian equity market continued its downward trajectory for the third consecutive day this week as investors lost N2.18bn on Wednesday.
The persistent decline saw the All Share Index (ASI) and the market capitalisation dipping marginally by 0.004 per cent to close at 99,802.08 and N56.46tn, respectively.
The week commenced with the Nigerian Exchange experiencing a significant loss of N8.62bn, attributed to the dip in stocks such as Caverton Offshore, Associated Bus Company, Nigeria Breweries, and 38 others.
The bearish trend persisted into Tuesday, with equity investors suffering a further N114bn loss.
Despite the ongoing downturn, the stock market’s year-to-date return remains at a robust 33.56 per cent, showcasing the market’s resilience in the face of recent volatility.
The banking industry dominated the volume and value charts in trading, with top gainers including Fidelity Bank, Zenith Bank, United Bank for Africa, and Guaranty Trust Bank Holdings.
This sector’s performance offered a glimmer of hope amidst the broader market decline.
Wednesday’s trading session revealed a prevalence of bullish activity, with the exchange witnessing 26 gainers compared to 22 losers.
Among the top gainers were Associated Bus Company, which saw a 10 per cent appreciation to close at N0.77, Eterna, gaining 9.98 per cent to close at N18.35, and Computer Warehouse Group, which rose by 5.48 per cent to close at N6.90.
Conversely, some of the top losers included Thomas Wyatt Nigeria Plc, which shed 10 per cent to close at N2.16, Daar Communications, which lost 8.77 per cent to close at N0.52, and Nigeria Breweries, which declined by 8.37 per cent to close at N29.
Despite the overall market downturn, the prevalence of gainers over losers indicates pockets of investor confidence and opportunities for recovery.
The mixed performance highlights the complexities of the Nigerian stock market as it navigates through economic challenges and investor sentiment.
As the week progresses, market participants will be closely monitoring the performance of key sectors and stocks, hoping for a reversal in the current trend.
The resilience of the banking sector and the emergence of gainers amidst the decline offer a cautious optimism for investors moving forward.
