Equities Market Sheds N931 Billion as 40 Stocks Decline in Another Bearish Session

The Nigerian equities market extended its losing streak for the fourth consecutive session Wednesday with investors losing N931 billion in value due to sustained price depreciation in several blue-chip and medium-cap stocks.

At the close of trading, the All-Share Index (ASI) fell by 1.47% from 1,526.14 points to settle at 102,095.95 points.

Similarly, market capitalisation dropped by N931 billion to close the day at N62.257 trillion.

The downturn was primarily driven by losses in Dangote Cement, Transcorp Power, Africa Prudential, Vitafoam Nigeria, and John Holt.

Analysts attributed the bearish sentiment to cautious trading among investors and subdued market confidence.

According to an analyst at Afrinvest, “Investor sentiment, as measured by market breadth, marginally strengthened to -0.18x (previously -0.28x) as 29 stocks advanced, 40 declined. We anticipate the market will continue to follow a similar trend tomorrow (today), driven by subdued investor sentiment.”

Despite the negative overall performance, Dangote Sugar Refinery, SUNU Assurance and NASCON Allied Industries emerged as top gainers, appreciating by 10% each to close at N36.85, N6.71, and N38.50, respectively.

Skyway Aviation Handling Company gained 9.95% to close at N33.15 while Austin Laz and Company advanced by 9.94% to settle at N1.99.

On the other hand, Dangote Cement and Universal Insurance lost 10% each to close at N387.90 and 63 kobo, respectively.

John Holt followed with a 9.99% decline to N8.47 while Transcorp Power and Omatek Ventures shed 9.97% and 9.89% to close at N324.00 and 82 kobo, respectively.

Market activity also declined as total shares traded dipped by 14.79% to 435.542 million units valued at N9.442 billion.

Universal Insurance led trading activity with 70.309 million shares worth N46.390 million followed by AIICO Insurance with 39.682 million shares worth N67.511 million.

Other notable trades included Access Holdings with 16.841 million shares worth N413.986 million; Livestock Feeds with 16.823 million shares valued at N106.766 million; and Nigerian Breweries with 16.195 million shares worth N518.152 million.

As the market grapples with persistent bearish sentiment, analysts are projecting a continued cautious approach by investors in the short term.

Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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