Nigerian Equity Market Suffers N56bn Loss as Bearish Trend Extends to Fourth Day

The Nigerian equity market continued its downward spiral on Thursday with investors losing N56 billion by the close of business.

This latest decline extends the market’s bearish trend to a fourth consecutive day, raising concerns among stakeholders and investors alike.

The All Share Index (ASI) fell by 0.10% to settle at 97,100.36 points while the market capitalization dipped to N55.13 trillion.

The year-to-date return dipped to 31.27%.

During Thursday’s trading session, investors exchanged a total of 271.3 million shares valued at N3.52 billion.

This represents a sharp 14% decline in trading volume, a 36% drop in turnover, and a 14% reduction in the number of deals compared to the previous day.

The bearish sentiment was evident across the board, with 116 listed equities participating in trading. Out of these, only 14 gained while 31 lost value.

Neimeth International Pharmaceuticals led the gainers with a notable 9.55% increase, closing at N2.18 per share.

TotalEnergies followed with an 8.82% rise, while AIICO Insurance and C & I Leasing saw gains of 6.54% and 6.07%, respectively.

In stark contrast, Oando topped the list of losers with a 9.94% decline, ending the day at N32.60 per share. Other significant decliners included ABC Transport (-9.52%), Livestock Feeds (-9.09%), Guinea Insurance (-9.09%), and CWG Plc (-7.69%).

Trading volumes were dominated by Veritas Kapital Assurance, with 33.4 million shares traded, followed by Sterling Bank with 16.6 million shares, AIICO Insurance with 16.4 million shares, and RT Briscoe with 16.2 million shares.

The market’s recent performance continues to reflect a broader trend of volatility. This week alone, the equity market has struggled to maintain positive momentum, with declines on Monday, Tuesday, and Wednesday.

On Monday, the ASI fell by 0.72%, while Tuesday and Wednesday saw further losses of 0.5% and 0.20%, respectively.

As the market grapples with these ongoing declines, analysts and investors are closely monitoring the situation.

The persistent bearish trend is prompting calls for strategic interventions to stabilize the market and restore investor confidence.