The Nigerian equities market closed in the red on Tuesday, shedding 0.67% and resulting in a loss of approximately N371 billion.
The negative trend was driven by investors selling off major stocks, including BUA Cement, Eterna, and Fidson Healthcare, on the Nigerian Exchange Limited (NGX).
At the close of trading, the NGX All-Share Index (ASI) dropped from the previous day’s high of 97,582.41 points to 96,928.52 points.
Similarly, the equities market capitalization fell from N55.404 trillion to N55.033 trillion, reflecting the market’s overall negative sentiment.
The day’s trading saw a total of 449,210,428 shares exchanged in 9,381 deals, amounting to N6.735 billion.
Among the actively traded shares were those of UBA, Oando, Veritas Kapital, Sterling Financial Holdings, and Access Holdings.
However, it was the significant declines in BUA Cement, Eterna, and Fidson Healthcare that captured the most attention.
BUA Cement experienced the most substantial drop, with its share price falling from N143.20 to N128.90, a decrease of N14.30 or 9.99%.
This decline significantly impacted the overall market, given BUA Cement’s substantial market capitalization.
Eterna also saw a considerable dip, with its share price dropping from N19 to N17.60, a loss of N1.40 or 7.37%.
Similarly, Fidson Healthcare’s share price decreased from N14.75 to N13.75, down by N1 or 6.78%. Other notable decliners included Thomas Wyatt, which fell from N1.76 to N1.61, and Champion Breweries, which decreased from N3.01 to N2.77.
Market analysts attributed the downturn to a combination of factors, including investor concerns over the naira’s depreciation, foreign exchange instability, and broader economic uncertainties.
The recent performance of the NGX highlights the challenges facing Nigeria’s financial markets as they navigate these economic headwinds.
Tony Anakebe, a maritime expert, emphasized the need for strategic interventions to revive investor confidence and stabilize the market.
“The government must focus on addressing the underlying economic issues affecting the market, including currency stability and foreign exchange policies,” he noted.
Despite the current bearish trend, some market participants remain cautiously optimistic about the market’s long-term prospects.
Ayokunle Olubunmi, head of financial institutions ratings at Agusto Consulting, suggested that targeted policies and economic reforms could help restore investor confidence and stimulate market recovery.
As the market continues to grapple with these challenges, stakeholders will be closely monitoring developments in the coming weeks. The performance of major stocks like BUA Cement, Eterna, and Fidson Healthcare will be particularly critical in determining the market’s trajectory.
In the meantime, investors are advised to adopt a cautious approach, staying informed about market trends and economic indicators.
The Nigerian equities market’s current volatility underscores the importance of strategic investment decisions in navigating these uncertain times.
