The Nigerian equity market witnessed another day of decline, shedding N730 billion on Tuesday, marking the second consecutive day of losses this week.
Investors expressed caution amidst the bearish trend, which has been attributed to sell-offs in medium to penny stocks.
According to market data, the benchmark index, the All-Share Index, experienced a 1.30 percent drop to 101,060.67 points, while the market capitalization declined to N55.298 trillion. This downturn further dampened the market’s year-to-date return, slipping to 35.16 percent from the previous day’s 36.94 percent.
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Reacting to the ongoing market conditions, a seasoned investor, Mr. Adeola Adebayo, expressed concern, stating, “The continuous decline in the equity market is worrisome. Investors are becoming increasingly cautious, leading to heightened sell-offs, particularly in medium to penny stocks.”
Despite the overall negative sentiment, some stocks managed to buck the trend. Juli Plc, Eterna Plc, and VeritasKap emerged as gainers, recording increases of 9.94 percent, 6.17 percent, and 5.97 percent, respectively.
Conversely, Honeywell Flour Mills, BUA Cement, and PZ Cussons topped the losers’ chart, experiencing declines of 10 percent, 9.98 percent, and 9.75 percent, respectively. PZ Cussons notably posted a negative asset value in its half-year report.
Trading activity also witnessed a decline, with total deals, volume, and value experiencing significant drops. The total deals fell by 9.34 percent, totaling 8,783 trades, while the total volume and value were down by 6.46 percent and 10.90 percent, respectively.
Reflecting on the day’s market performance, market analyst, Ms. Fatima Ibrahim, commented, “The prevailing bearish trend is driven by cautious investor sentiment, leading to increased sell-offs and decreased trading activity.”
In sectoral performance, four out of the five sub-indexes closed in the red zone, with the Oil & Gas sector being the sole gainer, driven by Eterna Plc.
United Bank for Africa, Geregu Power, and Transcorp Plc emerged as volume and value drivers for the day’s market activity, with Transcorp leading in volume and Geregu Power in value.
As the market continues to grapple with uncertainties, investors are urged to remain vigilant and strategic in their investment decisions.