Nigeria’s Equity Market Slides As Investors Lose N51bn Amid Negative Sentiment

Equity Market Experiences Setback

Nigeria’s equity market took a hit on Wednesday as investor sentiment shifted, causing the market to fall by 0.09%.

This downward movement resulted in a N51 billion loss for investors, as they grappled with fluctuating market conditions.

The Nigerian Exchange Limited (NGX) All Share Index (ASI) dropped to 96,715.04 points, while the market capitalization also dipped to N55.575 trillion.

Despite starting the week with a 0.29% gain, the equity market was unable to sustain the momentum. UBA, Jaiz Bank, Access Holdings, Oando, and RT Briscoe were among the most actively traded stocks of the day.

In total, 600 million shares worth N8.8 billion were exchanged across 9,546 deals.

Analysts Warn of Potential Pullback

Market experts had anticipated a possible downturn before Wednesday’s trading session. Vetiva Research, a Lagos-based firm, commented on the situation, stating, “The market appears vulnerable, and without fresh positive catalysts, we could see renewed downward pressure in the coming sessions.

Investors may need to brace for a potential pullback, especially if current mixed sentiments persist.”

The warning appears to have materialized as stocks like Northern Nigeria Flour Mills, CWG, Academy Press, Learn Africa, and SCOA experienced notable losses, dragging down the equity market.

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Major Decliners in the Market

Several stocks recorded significant declines by the close of the market. Northern Nigeria Flour Mills led the losses, dropping from N48.30 to N43.50, a decrease of 9.94%.

CWG also suffered, falling from N6 to N5.40, representing a 10% loss. Academy Press, Learn Africa, and SCOA followed with declines of 9.93%, 9.92%, and 9.90%, respectively.

The continued decline in these stocks added to the general negative sentiment around the market. Investors are now concerned about further losses in the coming sessions.

Positive Performance Lacking in Equity Market

The equity market has struggled to maintain positive performance throughout the month. Although it recorded a 0.14% rise for September, Wednesday’s losses have cast doubt on the market’s ability to hold its ground.

“We had hoped to see some stability, but the lack of significant upward momentum is a concern,” said a local investor.

The overall year-to-date (YtD) return on the equity market now stands at 29.34%, a slight reduction from previous weeks.

The Road Ahead for Nigeria’s Equity Market

As analysts predict further volatility, the future of Nigeria’s equity market remains uncertain. Market participants are advised to keep a close watch on upcoming economic data and corporate earnings that could impact investor sentiment.

Without new catalysts, the equity market may continue to face pressure in the short term.

As one stockbroker put it, “Investors are becoming more cautious, and without fresh confidence in the market, we may see further dips in key stocks.”