The Nigerian equity market experienced a downturn on Thursday, failing to sustain the gains from the previous day.
The market declined by 0.15 percent by the close of trading, reflecting earlier predictions of a mixed week for the equities market.
Join our WhatsApp ChannelInvestors were seen offloading shares of major companies, including Stanbic IBTC Holdings, Fidelity Bank, and May & Baker. This sell-off contributed to the market’s downward trend.
Stanbic IBTC Holdings saw its share price drop from N57 to N52, a decrease of 8.77 percent. Fidelity Bank’s share price fell from N10.80 to N9.75, losing 9.72 percent. May & Baker’s shares dipped from N6.70 to N6.03, a 10 percent loss.
“Investors are reacting to the current market conditions and taking profits where they can,” said a market analyst. “The decline in major stocks is a clear indication of cautious sentiment among traders.”
Fidelity Bank recently completed the necessary steps to raise up to N127.1 billion through a Rights Issue to existing shareholders and a Public Offer. Despite this positive development, the bank’s shares still declined significantly.
The Nigerian Exchange Limited (NGX) All-Share Index (ASI) and Market Capitalisation also fell. The ASI decreased from the previous day’s 99,284.38 points to 99,134.85 points. Market Capitalisation dropped from N56.163 trillion to N56.079 trillion.
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A total of 309,806,091 shares were traded across 6,765 deals, amounting to N5.385 billion. The year-to-date (YtD) return for the stock market reduced to 32.58 percent.
Thursday’s trading session saw Fidelity Bank, Access Holdings, Oando, Guinness, and Veritas Kapital Assurance as actively traded stocks.
“The market is still showing resilience despite the dip,” said a broker. “We expect to see some recovery as the market adjusts to the recent sell-offs.”
The negative market breadth from Wednesday carried over into Thursday, leading to a red close for the Lagos bourse. Investors are advised to remain cautious and stay informed about market trends and company performance.
“The equity market is going through a period of adjustment,” explained another financial expert. “It’s crucial for investors to stay focused on long-term goals and not be swayed by short-term fluctuations.”
As the week progresses, market participants will be keenly watching for any signs of recovery or further decline, especially in key stocks that influence the overall market sentiment.
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.
