Emmanuel OchayiThe Nigerian equity market faced a grim second consecutive day this week, shedding N730 billion on Tuesday alone.
The downward spiral follows closely on the heels of a significant loss of N1.82 trillion on Monday, with heavyweights like Dangote Cement and MTN Nigeria dragging the market down.
In a reflection of this downturn, the All-Share Index, a benchmark indicator, plummeted by 1.30 percent to 101,060.67 points, while the market cap dwindled to N55.298 trillion. This decline pushed the market’s year-to-date return further down to 35.16 percent from the previous day’s 36.94 percent.
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Sell-offs, particularly in medium to penny stocks, fueled the bearish trend witnessed. At the close of trading, only eight equities managed to record gains, contrasting sharply with 43 others that suffered losses.
Mr. Ade, a seasoned trader, expressed his concerns, stating, “The continuous decline in the market is quite alarming. Investors are getting wary, and the sell-offs are exacerbating the situation.”
The gainers for the day included stocks of Juli Plc, Eterna Plc, and VeritasKap, which saw increases of 9.94 percent, 6.17 percent, and 5.97 percent, respectively.
Conversely, Honeywell Flour Mills, BUA Cement, and PZ Cussons topped the losers’ chart, with declines of 10 percent, 9.98 percent, and 9.75 percent, respectively.
Trading activity witnessed a significant decline, with total deals, volume, and value all experiencing notable drops. Despite these challenges, the Oil & Gas sector managed to eke out a gain, driven largely by Eterna Plc.
United Bank for Africa, Geregu Power, and Transcorp Plc emerged as the volume and value drivers of the day’s market trend, with Transcorp being the most traded security in terms of volume and Geregu Power leading in value.
As the market grapples with this downturn, investors are closely monitoring developments, hoping for a reversal of fortunes shortly.
