Equity Market Records N2 Trillion Loss Amidst Higher Bond Yields

Decline In Nigeria's Equity Market Creating Entry Opportunity For Investors - Analysts

The Nigerian stock market witnessed another week of negative trading, with investors losing a total of N1.99 trillion.

The All-Share Index and market capitalization both declined by 3.44%, closing the week at 102,088.30 points and N55.86 trillion, respectively. The downtrend was primarily driven by weak sentiment stemming from expectations of higher yields in the fixed-income market.

Investors engaged in portfolio rebalancing activities ahead of anticipated corporate earnings announcements and the forthcoming Monetary Policy Committee meeting scheduled for Monday and Tuesday.

Across various sectors, performance remained largely negative, with downward movements observed across multiple stocks.

The insurance and industrial goods sectors recorded the steepest declines, shedding 8.91% and 7.94%, respectively, while the banking sector also closed in negative territory with a 2.10% decline, driven by a sell-off in key banking stocks.

However, the consumer goods (2.01%) and oil & gas (0.01%) sectors saw some upward movement as investors showed increased interest in select stocks within these sectors.

Trading activities during the week were characterized by reduced sentiment, with a total turnover of 1.377 billion shares valued at N31.58 billion traded in 42,040 deals. This represented a decrease from the previous week’s trading volume of 1.559 billion shares valued at N36.50 billion.

In terms of volume, the financial services industry dominated trading activities, accounting for 960.519 million shares valued at N16.84 billion. The conglomerate industry followed with 115.241 million shares worth N1.51 billion.

The top three equities by volume traded were Guaranty Trust Holding Company Plc, FBN Holdings Plc, and Transnational Corporation Plc, which collectively accounted for 343.584 million shares valued at N9.43 billion.

During the week, 14 equities appreciated in price, while 66 declined, and 74 remained unchanged. Notable gainers included Juli Plc, FBN Holdings, Geregu Power, and BUA Foods, which recorded price increases of 59.18%, 10.71%, 9.32%, and 6.27%, respectively.

On the other hand, Morison Industries Plc, Consolidated Hallmark Holdings Plc, and Sterling Financial Holdings Company Plc were among the top losers, shedding 32.66%, 19.35%, and 18.69%, respectively.

Looking ahead, market participants anticipate more corporate releases in the coming week, which could prompt further portfolio adjustments and trading activities in the market.

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