Emmanuel OchayiThe equity market faced a dip as the All-Share Index (ASI) dropped by 0.21% during the trading session, reflecting continued challenges in maintaining growth momentum.
The index shed 210.15 points, closing at 98,081.38, falling beneath its starting level for the day.
Join our WhatsApp ChannelTrading Volumes Continue to Drop
Investor sentiment remained cautious as trading volumes decreased for the third consecutive day. A total of 239 million shares were exchanged, a 7% decline from the previous day’s 257 million shares. Despite the drop in volume, a few stocks delivered strong performances.
“We’re seeing reduced investor activity as market sentiment remains weak,” said Tunde Adebayo, a market analyst. “The equity market is struggling to build on recent gains, and declining volumes reflect this hesitation.”
Equity Market Gainers and Losers
While the broader equity market experienced a slump, some individual stocks managed to outperform. GOLDBREW and DEAPCAP were notable gainers, each increasing by 10.00% and 9.85%, respectively. CHAMPION also saw an impressive 9.97% rise. On the other hand, ARADEL led the list of top decliners, falling by the daily maximum of 10.00%. Other significant losers included REGALINS, which dropped by 8.82%, and DAARCOMM, down 6.78%.
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The equity market remains in a delicate position. “While there are standout performers, the overall market is in a downward trend,” said Adebayo. “ARADEL’s sharp decline is particularly noteworthy.”
Volume and Market Capitalization Details
The day’s trading occurred across 7,318 deals, with the market’s capitalization settling at N59.43 trillion. In terms of transaction volume, STERLINGNG led the pack with 42.78 million shares exchanged. ZENITHBANK followed, trading 20.05 million shares, while GTCO moved 19.30 million shares. Other notable performers included ACCESSCORP, which saw 16.29 million shares traded, and UBA with 11.10 million shares.
“Increasing volumes in these stocks could indicate renewed interest from investors, but the market needs more broad-based participation to push the index higher,” Adebayo explained.
High-Value Transactions Lead the Equity Market
Despite the overall decline in the equity market, some high-value transactions dominated the session. ARADEL led in transaction value, recording trades worth N1.04 billion. GTCO followed closely with N1.00 billion in transactions. ZENITHBANK and OANDO also posted strong trading values of N751.8 million and N526.1 million, respectively.
Market watchers suggest that these high-value transactions show continued interest in select equities. “The equity market may be down, but some stocks are attracting substantial investment,” Adebayo said. “The challenge remains broadening this interest to lift the entire market.”
Performance of Key Stocks in the Equity Market
Among SWOOT (AIRTEL, BUA CEMENT, BUA FOODS, GEREGU POWER, SEPLAT, and DANGOTE CEMENT) stocks, there was no significant movement, with the group maintaining stable prices throughout the session. In contrast, the FUGAZ (FIRSTBANK, UBA, GTCO, ACCESSCORP, ZENITHBANK) stocks saw mixed performance. GTCO led the declines, shedding 3.85%, while FIRSTBANK, ACCESSCORP, and ZENITHBANK dipped slightly. UBA remained unchanged.
Equity Market Outlook
The current decline in the All-Share Index does not necessarily indicate a long-term downtrend, as the index is still tracking an overall recovery since the lows reached in August. However, for the equity market to maintain upward momentum, a boost in trading volume is needed.
“We’re cautiously optimistic about the equity market’s potential,” Adebayo remarked. “If trading volumes pick up, we could see the ASI push towards the 99,000 mark, potentially crossing the psychological barrier of 100,000.”
With investor sentiment showing signs of caution, all eyes will be on future trading sessions to determine whether the equity market can reverse its recent declines and regain upward momentum.
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.
