Nigerian equity market drops N114bn amid persistent bearish trend

By Esther Agbo

The Nigerian Exchange continued to experience bearish trading on Tuesday, leading to a significant N114 billion reduction in investor wealth.

The market capitalisation fell by 0.20 percent, closing at N56.46 trillion, while the All-Share Index ended at 99,805.95 points.

On Monday, the market had already seen a loss of N8.62 billion, driven by declines in Caverton Offshore, Associated Bus Company, Nigerian Breweries, and 38 other stocks.

Tuesday’s trading volume dropped by 38.7 percent to 422.68 million units from the previous session’s 689.98 million units.

However, the value of traded stocks surged by 653.03 percent, reaching N53.96 billion compared to N7.17 billion on Monday..

ATP Securities and Fund Limited commented in their daily report, stating, “The Nigerian Equities Market witnessed a decrease in trading activity today as deals, volume and equity declined, indicating subdued investor participation and a lack of significant market movement.”

“Also, the day’s trading witnessed bullish activity, with more gainers (28) than losers (224). Across sectors, four indices saw gains in performance, while the other two saw losses.

“The banking and insurance indices had losses of 1.99 percent and 0.15 percent, respectively.”

Conversely, the Oil & Gas and Consumer Goods indices rose by 0.45 percent and 0.3 percent, respectively while the industrial goods and ICT sectors saw gains.

Afrinvest research projected a positive market outlook, citing “bargain opportunities” as a potential driver for improved performance.