Emmanuel OchayiThe Nigerian equity market recorded a 1.99% decline in March, despite posting a gain of 0.67% in the final trading week. Friday, March 28, marked the last trading session of the month before the public holidays declared for Eid-el-Fitr celebrations on March 31 and April 1.
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Join our WhatsApp ChannelEquity Market Sees Mixed Performance in March
The Nigerian Exchange Limited (NGX) witnessed a mix of gains and losses throughout March. The market closed the month with a 1.99% drop, reflecting investor concerns over economic uncertainty. However, in the final trading week, investors gained N438 billion as the market rose by 0.67%.
The NGX All-Share Index (ASI) and market capitalisation, which opened the week at 104,962.96 points and N65.819 trillion, ended at 105,660.64 points and N66.257 trillion. Analysts observed that investors focused on defensive stocks, seeking stability amid the market’s volatility.
Investors React to Market Uncertainty
Analysts at Vetiva Research noted that the market’s recent fluctuations led to a cautious approach among investors. “Given the market’s unpredictable movement in recent sessions, we expect investors to shift focus towards defensive stocks, seeking stability,” they said in a report dated March 27.
Asset managers also played a role in shaping market trends, especially as March 28 marked the end of the first quarter. The final trading session of the quarter often sees portfolio adjustments as investors reposition for the next period.
Sectoral Trends in the Equity Market
The equity market saw varied performances across different sectors. Oil and gas stocks were mostly on offer, indicating reduced investor interest. However, industrial, banking, insurance, and consumer goods stocks attracted demand, driving positive movements in these segments.
This mixed sectoral performance reflects investors’ reactions to prevailing economic trends and expectations for the next quarter. Market analysts believe that while some sectors remain vulnerable to economic uncertainties, others, especially in banking and consumer goods, could see increased activity.
Equity Market Outlook for the Coming Months
The equity market’s overall positive return for the year stood at 2.67% as of March 28. This suggests that despite short-term declines, investor confidence remains intact. However, market watchers advise caution as volatility could persist.
As the market enters the second quarter, analysts predict a cautious but strategic approach from investors. The performance of global and local economic indicators will play a key role in determining future trends in the equity market.
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.
