Despite the gradual reopening of businesses across Nigeria as protests ease in Africa’s most populous nation, the equities market opened the new week on a negative note.
Shares of major financial institutions, including Zenith Bank and United Bank for Africa (UBA), were actively traded on the Lagos Bourse, but this activity was not enough to stave off a decline in the market.
On Monday, investors transacted 324,019,567 shares worth N6.217 billion in 9,738 deals.
However, these trades could not prevent the Nigerian Exchange Limited (NGX) All-Share Index and equities market capitalization from depreciating by 0.17 percent.
The NGX All-Share Index fell to 97,582.41 points from the previous trading day’s 97,745.73 points, while the market capitalization dropped to N55.404 trillion from N55.497 trillion.
Zenith Bank and UBA were among the top performers in terms of volume, reflecting investor interest and confidence in these financial giants.
However, the overall market sentiment remained cautious, reflecting the broader economic uncertainties and the lingering effects of the recent protests.
May & Baker experienced the most significant decrease, with its share price falling from N7.04 to N6.50, a loss of 54 kobo or 7.67 percent.
Chams followed closely, dropping from N2.20 to N1.98, a decline of 22 kobo or 10 percent. University Press also saw a significant decrease, with its share price declining from N2.42 to N2.18, losing 24 kobo or 9.92 percent.
The recent protests, which disrupted business activities across the country, have undoubtedly impacted investor sentiment.
Despite the easing of tensions and the gradual reopening of businesses, the market remains volatile.
Investors are still cautious, weighing the potential risks and rewards in an uncertain economic environment.
Analysts suggest that the current market downturn is reflective of broader economic challenges, including inflation, currency volatility, and regulatory uncertainties.
The Central Bank of Nigeria’s recent decision to unify the country’s foreign exchange market has also introduced new dynamics, influencing investor behavior and market performance.
As businesses continue to reopen and normalcy gradually returns, market watchers are hopeful that stability will soon be restored.
However, the immediate outlook remains cautious, with investors closely monitoring economic indicators and corporate earnings reports.
In the coming days, the performance of the equities market will largely depend on how quickly the economy recovers from the recent disruptions and how effectively companies can navigate the current challenges.
For now, active trades in financial institutions like Zenith Bank and UBA signal that there is still significant investor interest, albeit tempered by a cautious approach.
Market Summary
- NGX All-Share Index: 97,582.41 points (-0.17%)
- Market Capitalization: N55.404 trillion
- Total Deals: 9,738
- Total Shares Traded: 324,019,567
- Total Value Traded: N6.217 billion
Top Losers
- May & Baker: N6.50 (-7.67%)
- Chams: N1.98 (-10%)
- University Press: N2.18 (-9.92%)