Emmanuel OchayiNigeria’s stock market recorded a significant loss of N366 billion in the trading week ending Friday, March 14. Despite some gains in insurance and consumer goods stocks, the market’s performance remained weak.
Major losses came from banking, industrial, and oil & gas stocks, which dragged the Nigerian Exchange Limited (NGX) into negative territory.
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The stock market declined by 1.69% in March, lowering its year-to-date (YtD) return to 2.98%. This performance surprised analysts who had expected a positive close for the week.
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Despite mixed sessions of gains and losses, the market closed 0.51% lower, defying predictions of a rebound.
Analysts Expected a Market Rebound
Futureview research analysts had forecasted a positive market close due to renewed investor interest in undervalued stocks. They believed strong earnings reports and favourable corporate actions would drive investor sentiment.
However, these expectations did not materialise, and investors remained cautious.
Key Market Indicators Decline
At the beginning of the trading week, the NGX All-Share Index (ASI) stood at 106,538.6 points, with a total market capitalisation of N66.717 trillion.
By the end of the week, the ASI had dropped to 105,955.13 points, while the market capitalisation fell to N66.351 trillion.
What Next for the Stock Market?
Investors are now watching for major market catalysts that could drive recovery. Stronger corporate earnings, policy changes, and economic improvements may help stabilise the market in the coming weeks.
For now, uncertainty remains as the market movements continue to challenge investor expectations.
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.
