The Nigerian Exchange Limited (NGX) opened the week on a bearish note as the All-Share Index (ASI) declined by 0.03 percent to close at 104,529.62 points on Monday.
The dip in market performance plunged market capitalisation by N22 billion to N65.685 trillion.
The decline was driven by losses in 24 stocks, including Nestle Nigeria Plc, Fidelity Bank, United Bank for Africa (UBA), Oando and Africa Prudential.
These selloffs in large and mid-cap equities offset gains recorded by 28 other stocks as investors reacted to ongoing macroeconomic pressures.
Analysts at United Capital Plc attributed the negative sentiment to the elevated interest rate environment in the fixed-income market and investor caution ahead of the upcoming Monetary Policy Committee (MPC) meeting in May.
According to the firm, “The equities market might remain dovish due to the prevailing high-interest rate environment. We still expect bearish sentiment to linger as investors adopt a wait-and-see approach.”
Vetiva Dealing and Brokerage also noted that investor sentiment will likely remain mixed unless there is a shift in key market drivers.
“In the absence of significant changes to buy-side fundamentals, we expect cautious positioning to persist while investors hunt for undervalued stocks with solid fundamentals,” the firm said.
Despite the slight decline in the benchmark index, market breadth closed positive with 28 gainers and 24 losers.
Abbey Mortgage Bank led the gainers chart with a 9.95 percent increase to close at N6.74 per share. UPDC followed with a 9.82 percent gain to close at N3.13 while Guinea Insurance rose by 9.52 percent to settle at 69 kobo.
Other top gainers include VFD Group, which gained 9.46 percent and closed the day at N96, while Sovereign Trust Insurance appreciated by 9.41 percent to close at 93 kobo.
On the losers’ chart, International Energy Insurance led with a 9.76 percent drop to close at N1.48. Consolidated Hallmark Holdings followed with a decline of 8.33 percent to close at N2.75, while Japaul Gold and Ventures shed 7.46 percent to close at N1.86.
Chams Holding Company and Neimeth International Pharmaceuticals also recorded declines of 6.98 percent and 6.94 percent, respectively.
Trading activity remained active, with total volume rising by 12.69 percent to 428.163 million units valued at N10.518 billion exchanged in 14,583 deals.
Access Holdings led the activity chart with 55.988 million shares worth N1.145 billion. Zenith Bank followed with 55.428 million shares valued at N2.76 billion, while Fidelity Bank traded 39 million shares worth N725.873 million.
Other notable trades included UBA with 33.192 million shares worth N1.041 billion and Guaranty Trust Holding Company (GTCO) which exchanged 31.024 million shares valued at N2.116 billion.
Market participants are expected to remain cautious in the near term as monetary policy expectations and macroeconomic signals continue to shape sentiment across sectors.
