Emmanuel OchayiThe Nigerian equity market experienced a significant decline in the past week, with investors losing a total of N785 billion in value. This marks the fourth consecutive week of negative trading on the Nigerian Exchange this April.
“The bearish trend in the market offers an opportunity for discerning investors to enter the market,” said Ambrose Omordion, a market analyst and stockbroker.
The All-Share Index fell by 1.39% week-on-week to close at 98,152.91 points, while the market capitalization also declined by 1.39% to N55.51 trillion. Despite a weak market breadth, trading activity was positive, with a 15.16% increase in traded volume and a 6.02% rise in traded value.
This resulted from investors’ negative market sentiments following sell-offs, which made them stick to their strategy of avoiding stocks despite the risk-free markets’ optimistic outlook.
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Sector-wise, the banking index led the losers, with a 3.10% decline, followed by oil & gas and consumer goods. However, the insurance and industrial goods indexes recorded gains. Sunu Assurances, CAP Plc, and Livestock were among the top gainers, while Oando, Sovereign Trust Insurance, and Thomas Wyatt’s stocks experienced significant losses.
Looking ahead, analysts at Cowry Research expect a week of gradual gains in the market, driven by dividend qualifications. “Despite recent reversal signals, we expect the market to experience a gradual recovery in the coming week,” they said.
Overall, the equity market’s performance was largely negative, with investors adopting a cautious approach due to negative market sentiments and sell-offs. However, some analysts see this as an opportunity for discerning investors to enter the market.
