Emmanuel Ochayi
Equity Market Sees Consecutive Losses
The Nigerian equity market recorded its third straight day of decline on Wednesday, closing down by 0.04 per cent. The Nigerian Exchange Limited (NGX) All-Share Index (ASI) fell from the previous day’s high of 98,058.07 points to 98,023.23 points, while the overall market capitalisation dropped from N59.418 trillion to N59.396 trillion.
This marks the third consecutive negative session as investors adjust portfolios ahead of month-end, leading the equity market to experience a week-to-date (WtD) loss of 1.43 percent and a month-to-date (MtD) decrease of 0.54 percent.
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Insurance and consumer goods stocks led the decline, with companies like Jaiz Bank, PZ Cussons Nigeria, and UPDC experiencing notable losses. Jaiz Bank shares fell from N2.50 to N2.25, a decrease of 10 percent. Meanwhile, PZ Cussons dropped from N21 to N18.90, a loss of 10 percent, and UPDC saw a 9.37 percent dip, falling from N1.60 to N1.45.
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“Investors are cautious due to inflationary pressures, which affect consumer purchasing power,” said a market analyst from Meristem Securities. “This often drives profit-taking in consumer-focused stocks.”
Inflation Concerns Weigh on Equity Market
The continuous decline this week reflects a broader trend in the equity market, with investors eyeing inflation data closely. Amidst global inflationary pressures and local economic factors, investors have become more selective with equities, contributing to the current negative market trend.
“Inflation impacts nearly every segment of our economy,” remarked Emeka Okwu, a portfolio manager in Lagos. “In a market like ours, we’re seeing a shift as investors re-evaluate positions and seek more stability in their portfolios.”
Active Trades Signal Investor Caution in Market
On Wednesday, the market saw 10,028 trades, with a total of 538.9 million shares exchanged at a value of N15.3 billion. Jaiz Bank, UBA, Chams, MTNN, and Zenith Bank remained among the most actively traded stocks, indicating investor interest in large-cap stocks despite the bearish market sentiment.
Analysts expect the equity market to remain sensitive to inflationary data as the month closes.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
