Nigeria’s Equity Market Declines As Investors Sell Oando, Honeywell Flour Mills, Others

Nigeria’s equity market continued its downward trend on Tuesday, closing lower by 0.32%. The Nigerian Exchange Limited (NGX) All-Share Index (ASI) fell from 108,126.97 points in the previous session to 107,781.79 points. Similarly, the equities market capitalisation declined from N67.383 trillion to N67.168 trillion.

This decline reflects investors’ decision to offload shares in major stocks, including Oando, Honeywell Flour Mills, University Press, Morison, and International Energy.

Major Stocks Experience Declines

Oando recorded the highest loss, dropping from N57.60 to N52.00, representing a decline of N5.60 or 9.72%. Honeywell Flour Mills followed, as its share price fell from N12.50 to N11.25, marking a 10% decrease.

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University Press also suffered a significant drop, with its share price falling from N5.05 to N4.55, a decline of 50 kobo or 9.90%. Similarly, Morison’s share price decreased from N3.61 to N3.25, losing 36 kobo or 9.97%.

These declines contributed to the overall negative performance of the equity market, as investors reacted by selling off shares.

Market Activity and Trading Volume

Tuesday’s session saw investors trading a total of 363,013,197 shares worth N10.118 billion in 13,753 deals. Some of the most actively traded stocks included Access Holdings, Jaiz Bank, Zenith Bank, AXA Mansard, and Guinness Nigeria.

While the market witnessed high trading volume, the general performance remained weak due to sell-offs in major stocks.

Outlook for the Equity Market

Analysts believe that market sentiment may remain cautious in the coming days, especially as investors assess economic developments and corporate earnings. The equity market’s recent decline highlights the impact of investor decisions on stock prices, with major stocks facing significant losses.

Despite the downward trend, some investors may look for buying opportunities, particularly in banking and financial stocks that continue to attract interest. The performance of the equity market will depend on economic policies, investor confidence, and company earnings in the near term.