Nigeria’s Equity Market Dips To 0.10% Amid Mixed Investor Sentiment

Nigeria’s Equity Market Records 0.10% Decline

Nigeria’s equity market saw a decline of 0.10 percent on Wednesday, wiping off N56 billion from the Lagos Bourse.

Investors showed mixed sentiment, with some stocks taking a hit while others recorded gains.

The negative shift came after limited improvements in key market drivers, reflecting ongoing concerns about buy-side sentiment.

Declines in Key Stocks Weaken Market Performance

The drop in the equity market was largely attributed to significant losses in stocks like Ellah Lakes, ABC Transport, Eterna, C&I Leasing, and Livestock Feeds. Ellah Lakes led the decline, falling from N4.88 to N4.40, losing 48 kobo, representing a 9.84 percent drop.

ABC Transport followed, dropping from N1.35 to N1.22, a loss of 13 kobo or 9.63 percent. Eterna saw a similar fate, shedding N2.30 to close at N24.70, representing an 8.52 percent dip. Other stocks, such as C&I Leasing and Livestock Feeds, also recorded notable declines, contributing to the overall negative performance of the equity market.

Expert Comments on Market Sentiment

“The equity market is experiencing a downward trend due to weak investor confidence,” explained Adebola Adewale, a financial analyst. “Many investors are waiting for stronger buy-side signals before making more aggressive moves. The declines we’re seeing, especially in key stocks, show the cautious approach being adopted by market participants.”

Despite these losses, some investors are still finding opportunities in select stocks, showing that sentiment isn’t entirely bearish.

Positive Movements in Some Stocks Amid Declines

While the equity market witnessed an overall dip, a few stocks managed to buck the trend and record gains. Investors showed strong interest in stocks such as Lasaco Assurance, Mecure, Julius Berger, Regency Assurance, and Golden Guinea Breweries.

Lasaco recorded the highest gain, rising from N2.30 to N2.53, an increase of 23 kobo or 10 percent. Mecure followed closely, climbing from N8.45 to N9.25, adding 80 kobo, representing a 9.47 percent increase.

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Julius Berger was also among the top performers, moving from N150 to N164, adding N14 or 9.33 percent. Regency Assurance saw an increase from 55 kobo to 60 kobo, while Golden Guinea Breweries climbed from N3.15 to N3.40, adding 25 kobo.

Equity Market Sees Increased Trading Activity

Despite the overall decline in the equity market, trading activity remained robust. Investors traded shares primarily in Fidelity Bank, UBA, Sterling Financial Holdings, Nigerian Breweries, and Oando. In total, equity traders exchanged 356,134,129 shares worth N6.95 billion across 8,582 deals.

“The mixed performance in the equity market shows that there are still opportunities for gains, even as some stocks struggle,” commented investor Chuka Eze. “It’s about picking the right stocks and timing the market appropriately.”

Week-to-Date and Year-to-Date Performance

As of the close of trading, the Nigerian Exchange Limited (NGX) All-Share Index (ASI) dropped from the previous day’s high of 97,584.81 points to 97,487.14 points. The equities market capitalisation also decreased from N56.075 trillion to N56.019 trillion.

Week-to-date, the equity market has dipped by 0.03 percent, and for the month, it has declined by 1.09 percent. However, the market’s return year-to-date remains positive, standing at +30.38 percent despite the current challenges.

Looking Ahead in the Equity Market

Market experts predict that investor sentiment will likely remain cautious in the coming days, with many awaiting further clarity on market trends. However, analysts also note that opportunities for gains still exist in select stocks, especially for investors with a long-term perspective.

“The equity market is cyclical, and while we’re currently seeing a dip, this could present opportunities for investors who are willing to take calculated risks,” Adewale added.

The performance of the equity market in the coming days will largely depend on how investors react to market signals and broader economic indicators.