Nigeria’s equities market opened the week on a negative note as the All-Share Index (ASI) of the Nigerian Exchange Limited (NGX) declined by 0.24% to close at 108,261.47 on Monday, down from the previous close of 108,733.40.
The market capitalisation also fell by N297 billion to close at N68.042 trillion compared to N68.339 trillion recorded at the end of the previous session.
The bearish sentiment was driven by selloffs in key counters including E-Tranzact International, John Holt, Union Dicon and C&I Leasing.
In total, 414.57 million shares valued at N10.72 billion were traded in 16,664 deals during Monday trading session.
While market breadth tilted slightly negative as declining stocks outpaced gainers to reflect investor caution amid inflation concerns and expectations ahead of the upcoming Monetary Policy Committee (MPC) meeting.
E-Tranzact led the list of top decliners, falling from N6.00 to N5.40, representing a 10% loss. John Holt followed with a 9.48% drop to N5.25 while Union Dicon declined by 9.47% to N7.65. C&I Leasing also dipped by 8.31% to close at N3.86.
Analysts at Futureview Research had projected a mixed market performance for the week, citing profit-taking tendencies and macroeconomic variables such as inflation data as key drivers.
“However, strong Q1 earnings and interest in undervalued stocks should support investor sentiment and drive opportunities,” the firm noted.
Tantalizers, VFD Group, Access Holdings, Zenith Bank and AIICO Insurance were among the most actively traded stocks by volume and value.
Looking ahead, market analysts expect continued volatility as investors assess corporate earnings reports and weigh interest rate risks.
The elevated interest rate environment remains a headwind for equity investments, particularly for retail investors engaging in short-term profit booking.
However, opportunistic investors may continue to explore entry points in fundamentally strong stocks with positive Q1-2025 earnings performance.
The release of additional corporate results in the coming days is likely to influence sector rotation and investor positioning across the board.
With the Central Bank’s MPC meeting scheduled for next week, market participants are also positioning ahead of key policy rate decisions that could impact liquidity and equity valuations.
