The Nigerian stock market experienced a setback as it shed N279 billion in value on Tuesday to extend its decline.
This latest dip marks a 0.50% decline, further dampening investor sentiment on the Lagos Bourse.
After an already challenging start to the week, analysts at Lagos-based Vetiva Capital had predicted that the bearish sentiment would persist, citing limited changes in the factors driving the market’s buy-side action.
Despite this, there were hopes for some buying interest in fundamentally strong stocks.
However, these expectations did little to stem the overall market decline.
As a result of this ongoing sell-off, the market’s year-to-date (YtD) return has moderated to 30.25%, reflecting the growing uncertainty among investors.
The market has decreased by 1.22% so far this week, while the gains for August now stand at a meager 0.03%.
Oando Plc was among the most notable laggards, with its share price plummeting from N44.65 to N40.20, a loss of N4.45 or 9.97%.
The company’s sharp decline significantly contributed to the overall market downturn. Conversely, Mecure led the gainers, rising from N8.52 to N9.37, up by 85 kobo or 9.98%.
The Nigerian Exchange Limited (NGX) All-Share Index (ASI) dropped from the previous day’s high of 97,880.94 points to 97,390.01 points.
Similarly, the equities market capitalization decreased from N55.574 trillion to N55.295 trillion.
Tuesday’s trading session saw a total of 599,246,035 shares exchanged across 11,237 deals, amounting to a value of N13.916 billion.
Stocks such as GTCO, Japaul Gold, Access Holdings, Veritas Kapital, and Oando were actively traded, yet the overall market direction remained negative.
As the week progresses, market observers are keeping a close eye on the factors influencing investor behavior, particularly in light of the continued sell-off.
While some analysts hold out hope for a rebound, the prevailing sentiment suggests that the Nigerian equities market may continue to face pressure in the near term.
