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Nigerian equity market continues downward trend with N84bn loss

By Emmanuel Saviour The Nigerian Exchange recorded another loss on Thursday, shedding N84 billion as the equity market continued its downward trend. The losses were mainly driven by declines in the stocks of Skyway Aviation Handling, NEM Insurance, and 26 other companies. The All-Share Index fell by 0.15% to settle at 97,978.02 basis points, while…

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12 months ago

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By Emmanuel Saviour

The Nigerian Exchange recorded another loss on Thursday, shedding N84 billion as the equity market continued its downward trend.

The losses were mainly driven by declines in the stocks of Skyway Aviation Handling, NEM Insurance, and 26 other companies.

The All-Share Index fell by 0.15% to settle at 97,978.02 basis points, while the market capitalisation also decreased by 0.15%, closing at N55.424 trillion. The day’s trading was characterized by bearish activity, with 28 decliners outnumbering 17 gainers.

On Wednesday, the equity market saw an even larger loss of N89 billion, influenced by traders selling off banking stocks. This move came in response to the Central Bank of Nigeria’s Monetary Policy Committee’s decision to raise the benchmark interest rate. The interest rate hike aimed to control inflation, but it also made borrowing more expensive, which negatively impacted investor sentiment.

Significant losses in the market included Skyway Aviation Handling, which dropped by 9.80% to close at N20.70. NEM Insurance’s stock fell by 9.47%, ending at N7.65, and FTNCocoa lost 9.35% to close at N1.26. These declines contributed significantly to the overall market downturn.

On the gainers’ side, C&I Leasing saw the most significant appreciation, rising by 9.90% to N3.44. Caverton followed with a 7.69% increase, closing at N1.40. Despite these gains, the overall market sentiment remained bearish.

Trading volume and the number of deals both increased. The volume of traded shares rose by 16.5% to 316.453 million, while the number of deals grew marginally by 6.35% to 7,852. United Bank for Africa led the volume chart with 50,316,438 units traded in 788 deals, whereas Julius Berger was the most traded security by value, amounting to N1.47bn in 303 deals.

Sectoral performance showed mixed results. The banking sector fell by 1.42%, and the consumer goods sector saw a slight decline of 0.05%. In contrast, the oil and gas sector experienced a gain of 0.72%, while the industrial goods sector remained unchanged.

Investors are advised to remain cautious and keep an eye on macroeconomic indicators that could further influence market performance. The current trend suggests that the market may continue to experience volatility in the coming days.

However, the Nigerian equity market’s recent losses highlight the challenges faced by investors amid changing economic policies and market conditions. As the market adjusts to these developments, stakeholders will need to navigate carefully to mitigate risks and identify potential opportunities.

Author: admin

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