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Nigeria’s Equity Market Dips As Oando, Nascon, Others Pull Back On Key Stocks

3 months ago
1 min read

Nigeria’s Equity Market Records Minor Dip Amid Profit-Taking

The Nigerian equity market witnessed a slight decline on Wednesday as investors opted to sell off shares in some major companies, causing the All-Share Index (ASI) to dip by 0.07 percent.

This drop was largely driven by the sell-off in stocks like University Press, Oando, Nascon, May & Baker, and C&I Leasing.

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Key Stocks Drag Market Down

The equity market, which had shown strong performance earlier in the year, faced a setback as University Press led the pack of declining stocks.

The company’s shares fell from N2.66 to N2.41, marking a 9.40 percent decrease. A trader at the Nigerian Exchange Limited (NGX) commented, “Investors seem to be taking profits after recent gains, particularly in stocks that had previously seen significant appreciation.”

Oando was another major loser, with its share price dropping from N43.30 to N39.55, a decline of 8.66 percent.

This drop came as a surprise to some market watchers, given Oando’s strong performance in the energy sector.

“Oando’s dip reflects broader market sentiments rather than company-specific issues,” said a market analyst.

Nascon’s shares also saw a significant decline, falling by 8.39 percent from N35.15 to N32.20. May & Baker and C&I Leasing followed suit, with their shares dropping by 5.41 percent and 5.08 percent, respectively.

READ ALSO: Nigerian Equity Market Opens Week With Losses Amid Investor Caution

Year-to-Date Return Slips

With the overall market decline, the year-to-date (YtD) return has now decreased to +28.16 percent.

While this still represents a positive return, the decline highlights the volatility that has characterized the Nigerian equity market in recent months.

“We’re still in a positive territory, but these fluctuations are a reminder of the risks inherent in equity investments,” noted an investment manager.

Trading Activity and Market Capitalisation

Despite the dip in the All-Share Index, trading activity remained robust, with investors exchanging 360,558,689 shares in 8,813 deals, worth a total of N7.252 billion.

Oando, GTCO, Cutix, Universal Insurance, and FCMB Group were among the most actively traded stocks on Wednesday, indicating continued investor interest in these companies.

However, the Nigerian Exchange Limited (NGX) saw its Market Capitalisation decrease from N54.448 trillion to N55.047 trillion, reflecting the overall market trend.

The All-Share Index also fell slightly, from the preceding day’s 95,895.92 points to 95,831.51 points.

Market Outlook

Looking ahead, market analysts suggest that the equity market may continue to experience fluctuations as investors reassess their portfolios.

“We’re likely to see a mix of profit-taking and strategic buying as the year progresses,” said a financial advisor.

The equity market’s performance will depend on various factors, including macroeconomic conditions and investor sentiment.

In conclusion, while the equity market’s dip on Wednesday may raise concerns among some investors, it is important to view this in the context of the broader market trends and economic factors at play. As always, investors are advised to stay informed and make decisions based on thorough analysis and their financial goals.

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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.

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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