Emmanuel OchayiThe Nigerian equity market experienced a N72.09 billion loss at the close of trading on Friday. The decline was driven by a drop in the share prices of key stocks such as Multiverse, Aradel, and Intenegins.
This development has raised concerns among investors as the equity capitalisation fell significantly within a single trading day.
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At the end of five hours of trading, the equity capitalisation decreased from N61.37 trillion on Thursday to N61.30 trillion on Friday. This loss reflects a notable shift in market valuation, affecting investor confidence.
The All-Share Index (ASI), a key performance indicator of the equity market, also dropped from 101,248.02 points recorded on Thursday to 101,129.09 points on Friday. The decrease signals a broader market decline and highlights the need for investors to stay informed about market trends.
Stock Gainers and Losers
While the equity market saw significant losses, some stocks posted gains. UACN, Honey Flour, and Universal Insurance led the list of gainers with each recording a 10% increase in share prices. UACN’s share price rose from N27.50 to N30.25, Honey Flour increased from N5.50 to N6.05, and Universal Insurance moved from N0.40 to N0.44.
On the losing side, Multiverse, Aradel, and Intenegins experienced significant price declines. Multiverse’s share price fell by 9.80%, closing at N4.60 from N5.10. Aradel’s price dropped by 9.09%, ending at N664.00 from N730.40. Intenegins recorded an 8.13% decline, with its share price falling from N1.60 to N1.47.
Market Breadth and Trading Volume
The market breadth, which compares the number of advancing stocks to declining ones, was positive on Friday. Out of the stocks traded, 38 advanced, 15 declined, and 68 remained unchanged.
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This indicates that while a few key stocks saw losses, a majority of the market showed stability or growth.
In terms of trading volume, Zenith Bank led with 60 million shares traded across 458 deals. UBA followed closely, trading 43 million shares in 737 deals. Sterling Nigeria matched UBA’s trading volume, also recording 43 million shares but with only 211 deals.
This trading activity shows significant interest in banking stocks, particularly Zenith Bank, which had the highest deal volume.
Value of Trades on the Equity Market
On the value index, Zenith Bank led with stock trades worth N2.7 billion in 498 deals. Seplat followed with trades valued at N2.1 billion spread over 87 deals.
Aradel saw shares valued at N1.9 billion traded in 683 deals, highlighting its impact on the market’s overall performance.
Investor Reactions and Market Outlook
The N72.09 billion loss in the equity market has sparked reactions from investors and market analysts. Many are keeping a close watch on stocks like Multiverse, Aradel, and Intenegins due to their significant price declines. Analysts predict that market sentiment could shift depending on external factors and investor confidence in the coming weeks.
While the equity market’s long-term prospects remain uncertain, the positive market breadth indicates that other stocks are still generating value for investors. This could present an opportunity for strategic investments in sectors that are showing signs of growth.
The Nigerian equity market’s N72.09 billion loss highlights the volatile nature of stock trading. With major stocks like Multiverse, Aradel, and Intenegins posting significant price declines, investors are urged to stay updated on market trends and emerging opportunities.
Despite the losses, positive market breadth and strong performances by stocks like UACN, Honey Flour, and Universal Insurance offer hope for market recovery.
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.
