Equities Market Declines as Investors Seek Safe Haven, Loses N176bn

The Nigerian equities market recorded its first negative close of the week on Wednesday as investors turned cautious amid growing uncertainty.

The market declined by N176 billion in value as risk-off sentiment swept across the trading floor of the Nigerian Exchange Limited (NGX).

The NGX All-Share Index (ASI) fell by 0.32% to close at 96,203.65 points, down from the previous session’s high of 96,510.13 points.

Similarly, market capitalization dropped to N55.261 trillion from N55.437 trillion while the year-to-date (YtD) return slipped from 28.84% to 28.66%.

Investor sentiment was largely driven by concerns over market volatility, prompting many to reduce their exposure to high-risk stocks.

Heavyweights such as MTN Nigeria, Neimeth Pharmaceuticals, Tantalizer, and Jaiz Bank were particularly affected, with their stock prices witnessing notable declines.

MTN Nigeria led the sell-off, shedding N15.80 or 7.91% from N199.80 to N184. Jaiz Bank followed closely with 15 kobo or 6.25% as its share price dipped from N2.40 to N2.25.

Neimeth Pharmaceuticals also saw a sharp decline, falling from N2.20 to N2, down by 9.09%.

Meanwhile, Tantalizer’s share price dropped by 8.64%, losing 7 kobo to close at 74 kobo.

The day’s trading session saw 446.6 million shares exchanged across 10,148 deals, with a turnover of N4.53 billion.

Despite the overall bearish sentiment, stocks like Universal Insurance, Japaul Gold, and Prestige Assurance were actively traded, providing some liquidity in the market.

Analysts from Vetiva had earlier predicted cautious optimism for the midweek trading session, with mixed sentiment suggesting limited upside potential.

The analysts pointed out that investors were likely to retain a risk-off stance in the coming days as market conditions remained uncertain.

The broader market continues to face headwinds, with macroeconomic challenges and global market volatility contributing to the nervousness among investors.

As a result, many are choosing to reallocate their portfolios, favoring more stable investments over the traditionally high-risk equities market.

Analysts expect the cautious mood to persist as investors weigh the risks and opportunities in the Nigerian market. Until clearer signs of stability emerge, market participants may continue to tread carefully, prioritizing capital preservation over aggressive risk-taking.

As the week progresses, all eyes will be on the NGX to see if it can rebound from Wednesday’s losses or if the bearish trend will continue.