Emmanuel OchayiNigeria’s Equity Market Records N18.9bn Loss As Key Stocks Decline
The Nigerian equity market experienced a setback on Tuesday, with investors losing N18.9 billion at the close of trading.
This loss was driven by declines in the share prices of notable stocks, including Sovereign Trust Insurance, John Holt, and Ellah Lakes, which weighed on overall market performance.
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The equity capitalization decreased from N59.24 trillion on Monday to N59.22 trillion on Tuesday. Similarly, the All-Share Index (ASI) dropped slightly, moving from 97,733.86 to 97,702.56.
Despite the decline in overall market value, the trading session recorded a positive market breadth. A total of 29 stocks advanced, while 22 stocks declined.
However, 68 stocks remained unchanged during the five-hour trading period.
Gainers in the Equity Market
Beta Glass, Golden Breweries, and WAPCO emerged as the top gainers in the equity market. Beta Glass increased by 10%, rising from N49.00 to N53.90 per share.
Similarly, Golden Breweries recorded a 10% growth to close at N4.07 from its previous value of N3.70, while WAPCO gained 9.95%, closing at N70.15 from N63.80.
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Declining Stocks Impact Market
On the downside, Sovereign Trust Insurance (STI), John Holt, and Ellah Lakes led the group of declining stocks. STI dropped by 10%, falling from N0.80 to N0.72 per share.
John Holt saw a 9.98% decrease, closing at N8.03 compared to its previous N8.92. Ellah Lakes experienced a 9.92% dip, settling at N3.18 from N3.53.
Trading Highlights
On the volume index, Mansard led the market with 32 million shares traded across 101 deals. It was closely followed by UBA, which traded 31 million shares in 642 deals, and Access Corporation, with 27 million shares exchanged in 523 transactions.
In terms of value, ARADEL recorded the highest trading value, with stocks worth N1.7 billion traded in 346 deals. UBA followed, with equities valued at N1 billion in 642 deals, while WAPCO traded shares worth N993 million in 184 transactions.
Investors React to Market Trends
Market analysts observed that the fluctuations in the equity market reflect broader investor sentiment and strategic portfolio adjustments.
A financial analyst noted, “The dip in share prices of major stocks like Sovereign Trust Insurance and John Holt has impacted investor confidence in the short term. However, the gains by companies like Beta Glass and WAPCO indicate opportunities for recovery.”
Outlook for the Equity Market
The equity market remains a critical area of focus for investors seeking opportunities amid fluctuating trends.
Stakeholders are advised to monitor key indices and diversify their portfolios to mitigate potential risks in the volatile trading environment.
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.
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