Emmanuel OchayiInvestors in the equity market experienced a notable loss of about N47 billion on Wednesday as the Nigerian Exchange resumed trading after the two-day Eid al-Fitr holiday.
The market faced a bearish trend, with the All-Share Index and market capitalization falling by 0.08%, settling at 99,840.95 points and N56.48 trillion, respectively.
Join our WhatsApp ChannelThe day’s trading saw more decliners than gainers, with 41 stocks declining compared to 15 stocks gaining. “The market sentiment was largely negative, which is reflected in the higher number of losing stocks,” said John Obiora, a stock market analyst.
Despite the overall downturn, some stocks managed to advance. University Press, Guinness Nigeria, and Champion Breweries were among the top gainers. University Press appreciated by 10% to close at N1.44, Guinness Nigeria rose by 9.96% to close at N66.25, and Champion Breweries increased by 9.83% to N3.24.
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On the other hand, Caverton Offshore Support Group led the decliners, losing 9.62% to close at N1.41. Associated Bus Company followed with a 9.52% decline, ending at N0.57, while Prestige Assurance Company dropped by 8.37% to close at N29.00.
“The decline in these stocks can be attributed to the prevailing market conditions and investor sentiment,” explained Obiora. “Investors are cautious, and this has led to a sell-off in some stocks.”
Trading activity on the Nigerian Exchange showed an increase in the number of deals and volume. The number of deals surged by 35.57% to 9,899, while the trading volume skyrocketed by 334.91% to 138,347,794 shares. Additionally, the trading value rose by 223.02% to close at N16.48 billion.
Fidelity Bank led in trading volume, with 1.05 million shares exchanged in 466 deals. Nigerian Breweries followed, trading 60.67 million shares in 293 deals.
Reflecting on last week’s performance, the market saw a slight positive movement. The market capitalization and the All-Share Index appreciated by 0.09% to close at N56.53 trillion and 99,925.29 points, respectively. “Last week’s gains were modest, but they provided some optimism for investors,” noted Obiora.
The equity market’s performance indicates the volatility and challenges faced by investors. “The market is unpredictable, and investors need to stay informed and make strategic decisions,” advised Obiora. “It’s important to consider both the short-term movements and the long-term potential of stocks.”
As the market continues to navigate through fluctuations, investors are advised to stay cautious and monitor trends closely. “It’s a dynamic environment, and being well-informed can help mitigate risks,” concluded Obiora.
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.
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