Investors Lose N208bn As Key Index Declines On Equity Market

Investors in the Nigerian equity market experienced significant losses on Wednesday as the market capitalisation dropped by N208 billion.

This decline followed a dip in the share prices of major stocks such as JOHN HOLT, ARADEL, and ETERNA, which weighed heavily on the trading floor.

Key Metrics Reflect Market Downturn

After five hours of trading, the equity capitalisation fell to N58.9 trillion, down from the previous day’s N59.1 trillion. The All-Share Index (ASI), a critical indicator of market performance, also dropped to 97,296.57 from 97,639.88 recorded on Tuesday.

Market breadth, which compares the number of advancing stocks to declining ones, was negative. Out of the 122 stocks traded, 23 stocks advanced, 26 stocks declined, and 73 remained unchanged.

Gainers Lead Despite Equity Market Decline

SUNU ASSURANCE, GUINEA INSURANCE, and CONOIL emerged as the top gainers of the day. SUNU ASSURANCE’s share price increased by 9.97%, closing at N4.19 from N3.81. Similarly, GUINEA INSURANCE recorded an 8.16% increase, closing at N0.53, while CONOIL’s share price rose by 6.56% to end the day at N276.00.

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These gains provided some relief to investors as other key stocks experienced significant declines.

Declining Stocks Impact the Equity Market

JOHN HOLT, ARADEL, and ETERNA were the top price decliners, leading to the market’s overall loss. JOHN HOLT’s shares fell by 10%, closing at N9.90 from N11.00. ARADEL and ETERNA also recorded significant losses, with their share prices dropping by 9.98% and 9.88%, respectively.

The decline in these stocks contributed heavily to the N208 billion drop in the equity market’s capitalization.

Trading Volume and Value Reflect Mixed Sentiments

On the volume index, HM CALL led trading with 373 million shares exchanged in 342 deals, followed by JAPAUL GOLD, which traded 285 million shares in 492 deals. TANTALIZER also recorded significant activity, with 34 million shares traded in 110 deals.

In terms of value, HM CALL traded stocks worth N2.1 billion, making it the most valuable transaction of the day. GTCO and UBA followed with stocks valued at N1.5 billion and N930 million, respectively.

Implications for Investors

The losses in the equity market highlight ongoing volatility, particularly in sectors impacted by declining stock prices. Investors are closely monitoring market trends and seeking opportunities in rising stocks to balance their portfolios.

The dip in equity capitalisation signals caution for traders, even as some stocks continue to show potential for growth.