Nigeria’s equities market began the week on a downward trajectory with the benchmark index posting a marginal decline amid subdued investor sentiment and growing concerns over the impact of elevated interest rates.
At the close of Monday’s trading session, the Nigerian Exchange Limited (NGX) All-Share Index (ASI) edged lower by 0.15 percent to settle at 105,799.17 points while market capitalization dipped by N8 billion to N66.343 trillion.
Mixed Sentiment Amid Macro Headwinds
Despite initial expectations of bargain hunting, trading remained largely cautious as investors weighed macroeconomic developments, particularly the prevailing high-interest-rate environment.
Analysts noted that concerns over the fixed-income market’s attractiveness continued to dampen risk appetite in equities.
“The current market conditions suggest a lingering cautious outlook among investors, particularly in light of the elevated yields in the fixed-income space,” a research note from United Capital stated. “While a recovery is possible in the short term, sentiment remains weak as traders seek more clarity on inflation trends and corporate earnings.”
Sector Performance and Key Decliners
The session was marked by notable declines in insurance stocks and select banking equities, with market breadth tilting toward the negative.
Top losers were Etranzact, Sunu Assurances, Prestige Assurance, Sovereign Trust Insurance, and Red Star Express.
Etranzact led the list of decliners, shedding 10 percent to close at N5.85 per share, while Sunu Assurances dropped 9.92 percent to N4.63.
Prestige Assurance and Sovereign Trust Insurance lost 8.26 percent and 7.77 percent, respectively.
In contrast, some banking stocks remained active with Jaiz Bank, Zenith Bank, Sovereign Trust Insurance, Prestige Assurance, and Fidelity Bank ranking among the most traded equities.
The session saw a total of 477.5 million shares exchanged across 13,520 deals, with total market turnover standing at N7.04 billion.
Outlook: Will Bargain Hunting Emerge?
Market analysts remain divided on the short-term outlook, with some expecting a mild rebound driven by bargain hunters seeking entry points in undervalued stocks.
Others caution that sustained selling pressure could extend the bearish trend if external conditions—such as inflation data and interest rate movements—continue to weigh on investor sentiment.
“We anticipate selective buying activity in upcoming sessions, but the broader market direction will likely be influenced by upcoming corporate earnings reports and macroeconomic indicators,” Vetiva research analysts noted in their post-trading review.
With Nigeria’s inflation rate recently moderating to 23.2 percent in February, some optimism remains that easing price pressures could gradually restore confidence in equities.
However, market participants remain watchful for signals that could dictate near-term trading patterns.
For now, the equities market remains in a wait-and-see mode, as investors assess whether the recent downturn presents a temporary dip or a sign of further corrections ahead.
