The Nigerian equity market recorded its first decline of the week on Wednesday, confirming analysts’ expectations of mixed trading sessions. The market fell by 0.10 per cent, translating to a loss of N74 billion, as investors adjusted their positions after early-week gains.
Market Performance and Investor Reactions
After last week’s loss of over N500 billion at the Nigerian Exchange Limited (NGX), many investors sought opportunities to buy undervalued stocks early this week. However, the market could not sustain the momentum, closing lower at 105,475.38 points from the previous day’s 105,593.28 points. Similarly, market capitalisation declined from N66.214 trillion to N66.140 trillion.
Join our WhatsApp ChannelAnalysts at Vetiva Research had earlier predicted that strong inflows and broad-based gains across banking and insurance stocks would drive positive sentiment. However, they also cautioned that profit-taking activities could limit market gains as investors awaited earnings reports from major banks. Their projections played out as market participants took cautious positions, leading to Wednesday’s decline.
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Key Stocks and Market Movers
Some of the most actively traded stocks included Lafarge Africa, Sovereign Trust Insurance, Cutix, Fidelity Bank, and Access Holdings. A total of 5.76 billion shares worth N342.6 billion were exchanged in 10,908 deals.
Among the biggest losers was UH REIT, which declined by 9.93 per cent, falling from N56.90 to N51.25. ABC Transport also dropped by 9.80 per cent, moving from N1.53 to N1.38. Champion Breweries saw a 5 per cent loss, with its share price falling from N4 to N3.80.
Corporate Announcements and Market Outlook
Eterna Plc’s Board of Directors held a meeting on Monday, March 24, where they approved the company’s audited financial statements for the year ending December 31, 2024. The financial statements will be filed with the Nigerian Exchange Limited on or before March 31, 2025.
In another corporate development, Unilever Nigeria Plc announced the appointment of Adenike Ogunlesi as an Independent Non-Executive Director, effective from March 24, 2025. The appointment is expected to strengthen the company’s governance structure and strategic direction.
Future Market Expectations
The equity market is expected to remain volatile as investors balance profit-taking activities with emerging opportunities in the banking and consumer goods sectors. Analysts predict that upcoming corporate earnings reports will influence market direction in the coming weeks.
The performance of the equity market will depend on investor confidence, economic policies, and global financial trends. As trading continues, market participants will closely watch developments in key sectors to guide their investment decisions.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.