Nigeria’s Equity Market Declines By 0.07% As Investors Remain Cautious

Nigeria’s equity market recorded a decline of 0.07% on Wednesday, as investor caution continued to impact market activity. Market capitalisation decreased by N48 billion, reflecting reduced confidence in the trading environment. Stocks such as Conoil, Berger Paints, and International Energy Insurance were among the major losers, pulling the market further down.

The Nigerian Exchange Limited (NGX) All-Share Index (ASI) also declined, moving from 106,167.75 points to 106,090.38 points. Likewise, market capitalisation dropped from N66.484 trillion to N66.436 trillion, showing the market’s weak momentum.

Major Stocks Experience Sharp Declines

Some key stocks saw significant losses, deepening the equity market downturn. Conoil fell from N368 to N331.20, losing N36.80 or 10%. Berger Paints dropped from N20.90 to N18.85, a decrease of N2.05 or 9.81%. Similarly, International Energy Insurance declined from N1.94 to N1.75, shedding 19 kobo or 9.79%.

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These losses highlight investors’ reluctance to take new positions, as market conditions remain uncertain. Analysts predict further cautious trading, with selective interest in fundamentally strong stocks.

Market Sentiment Remains Weak

Analysts at Vetiva Research noted that investor sentiment remains cautious, limiting buying activity. Despite some interest in well-performing stocks, overall market participation has been subdued.

“Investor sentiment remains cautious, thus we anticipate a continuation of mixed and cautious trading, driven by selective buying interest in fundamentally sound stocks, though intermittent profit-taking may persist,” analysts at Vetiva Research stated in their March 11 market review.

This cautious sentiment has resulted in a slowdown in trading volume. On Wednesday, 1,498,849,693 shares were exchanged in 11,748 deals, with a total value of N10.259 billion. Major stocks like Zenith Bank, Jaiz Bank, and United Capital were among the most actively traded.

Equity Market Faces Continued Uncertainty

The weak performance of the equity market reflects broader economic concerns affecting investor confidence. Market trends suggest that until economic stability improves, cautious trading will persist.

While some investors are seeking opportunities in fundamentally strong stocks, profit-taking activities may continue to disrupt market recovery. The coming days will be critical in determining whether market sentiment improves or if further declines are expected.

For now, analysts advise investors to remain cautious and focus on stocks with strong fundamentals. The equity market may experience further fluctuations, depending on economic indicators and external market forces.