Nigeria’s equities market opened the new month on a downturn, experiencing its highest daily decline in a week marred by nationwide protests.
On Thursday, the market recorded a 0.42 percent decrease at the close of the trading session, the fourth consecutive day of declines.
The Nigerian Exchange Limited (NGX) All-Share Index and market capitalization fell to 97,359.76 points and N55.278 trillion, respectively, down from the previous day’s highs of 97,774.22 points and N55.513 trillion.
The drop in market performance coincided with the first day of a 10-day protest organized by Nigerian youths, who took to the streets across major cities to voice their grievances against bad governance and widespread hunger.
The protests, planned well in advance, have seen significant participation, underscoring the deep-seated frustrations among the nation’s populace.
Shares of several major companies were hit hard. Oando Plc saw its share price drop from N25 to N23, a loss of N2 or 8 percent. Dangote Sugar Refinery also experienced a significant decline, falling from N37.15 to N34.30, a decrease of N2.85 or 7.67 percent.
Ahead of Thursday’s trading, financial research firms had issued warnings to their clients. Lagos-based Meristem research informed its clients that due to the anticipated nationwide protest, all their offices in Lagos, Port Harcourt, and Abuja would remain closed on Thursday, August 1, 2024.
“We will closely monitor the situation and provide further communication depending on the developments of the protest,” the firm stated.
Despite the closures and disruptions, trading continued, with shares of Fidelity Bank, UBA, Zenith Bank, Oando, and Access Holdings being actively traded. Investors in 6,821 deals exchanged 565,116,303 shares worth N8.530 billion.
Analysts from Vetiva Research had forecasted a subdued market sentiment, stating, “Barring a significant shift in the local capital markets environment that would benefit the equity space, we anticipate a flat to negative tilt in market sentiment on the back of this.”
The ongoing protests, which began on Thursday, August 1, have highlighted the urgent issues facing Nigeria, Africa’s most populous nation. The youth-led demonstrations reflect widespread dissatisfaction with the current state of governance and the economic hardships that many Nigerians face daily.
