Equities Market Suffers N289 Billion Loss as Bears Prevail

The Nigerian Exchange Limited (NGX) witnessed a downturn on Wednesday as sustained bearish sentiments wiped off N289 billion from investors’ wealth.

The market capitalisation of listed equities fell by 0.43% to close at N66.653 trillion, down from N66.942 trillion recorded in the previous session.

Similarly, the All-Share Index declined by 467.77 points to settle at 106,437.48 from 106,904.25 points.

The slump was primarily driven by price depreciation in large and medium-cap stocks, including Transcorp, Eterna, Okomu Oil, African Prudential, Nigerian Breweries, Dangote Sugar, NGX Group and Wema Bank.

Market breadth also reflected the negative sentiment, with 43 stocks declining against 12 gainers, pushing the market into a deeper bearish zone.

Tantalizer led the gainers’ chart with a 9.64% increase to close at N2.16 per share followed by Uhomreit, which gained 8.84% to close at N52.95 per share.

On the other hand, Caverton Business Solutions topped the losers’ list, dropping by 10% to close at N2.52 per share, while Conoil Plc fell by 9.87% to N3.56 per share.

In terms of volume, 399.57 million shares worth N11.31 billion were traded in 11,423 deals, representing a slight increase from the previous session’s 395.47 million shares valued at N8.76 billion across 13,967 deals.

Fidelity Bank led market activities with 47.92 million shares valued at N803.47 million, followed by AccessCorp with 35.60 million shares worth N853.88 million.

Analysts attributed the market’s negative performance to cautious trading by investors amid declining yields in the fixed-income market. Vetiva Dealings and Brokerage noted that the sentiment would likely remain cautious, with bargain hunters stepping in selectively.

Similarly, Afrinvest projected that the bearish trend might persist due to the absence of positive catalysts to drive a reversal in sentiment.

The continuous depreciation of the naira and rising inflation have further compounded the challenges facing the equities market.

As investors navigate these headwinds, market analysts have called for policy interventions to stabilise the macroeconomic environment and restore investor confidence.

With the prevailing bearish momentum and uncertainties surrounding the foreign exchange market, stakeholders anticipate a mixed performance in the coming sessions unless significant positive triggers emerge to reverse the current trend.