NGX: Market Sees Bearish Turn In 2024 As ASI Plunges By 1.4%
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Market Cap Suffers N849bn Loss As Key Players Dip

Analysts Warn Of Ongoing Correction

1 min read

The Nigerian Exchange witnessed a downturn on Tuesday, with losses recorded across major players including BUA Cement, Sterling Financial Holding Company, Consolidated Hallmark Holdings, UPDC, and The Initiates.

The market saw a decline of N849 billion in market capitalization, marking a pivotal shift from the bullish trends of recent weeks.

The All-Share Index experienced a notable dip of 1,551.76 points or 1.50 percent, settling at 102,108.05.

Analysts at Arthur Steven Asset Management Limited attributed this downturn to sell-offs observed in various securities on the exchange, which triggered a wave of cautious trading sentiments among investors.

Trading activity on Tuesday remained bearish, with only 14 gainers compared to 46 losers. The value of traded equities plummeted by 60.70 percent to N7.60 billion, while the volume of trade also saw a significant decrease of 41.28 percent to 494.19 million.

Additionally, the number of deals executed dropped to 11,761, reflecting a decline from the previous day’s figures.

Despite the overall negative trend, some penny to medium-priced securities managed to buck the trend and saw an increase in their values. Juli Plc and Cadbury Plc notably gained 10 percent each, closing at N0.77 and N24.20, respectively. Meyer Plc, Daar Communications, and Cap Plc also experienced gains, closing at N5.20, N0.84, and N25.10 per unit, respectively.

JAIZ Bank led the charts in terms of volume of trade, followed closely by Universal Insurance, Guaranty Trust Holding Company Plc, and FBN Holdings. However, with analysts projecting a pull-back in the capital market following the recent bullish rally, concerns over the sustainability of the market’s upward trajectory persist.

David Adonri, a stockbroker and the Executive Vice Chairman of Highcap Securities, cautioned that the market’s bullish run may have been primarily driven by sentiments rather than economic fundamentals. He emphasized the importance of an orderly correction to maintain market stability moving forward.

As the market navigates these turbulent waters, investors are advised to exercise caution and stay vigilant amidst ongoing fluctuations.

Emmanuel Ochayi
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