Investors in the equity market witnessed significant losses totaling approximately N481 billion as trading closed on Thursday, reflecting a continued bearish trend and diminishing investor interest.
The shift in investor focus towards Treasury Bills during Wednesday’s primary market auction contributed to the downturn in the equity market. Notably, the yield on the one-year Nigerian Treasury Bill rose to 19%, indicating heightened interest in this investment avenue.
Results from the auction revealed substantial investor demand, with bids totaling N1.87 trillion for the N600 billion offered. Ultimately, N908.75 billion was allotted, with stop rates fixed at 19%. Bidders submitted offers ranging from 13% to 29.9%.
The robust demand for treasury bills, according to Tunde Amolegbe, Managing Director of Arthur Steven Asset Management, underscores investor confidence in the current government and its reform agenda. Amolegbe highlighted investors’ preference for longer-term investments, signaling trust in government policies and initiatives.
In the equity market, the All-Share Index and market capitalization both experienced a decline of 0.86%, closing at 101,227.66 points and N55.39 trillion, respectively.
Trading activity saw an increase in volume, rising by 39.91% to 478.38 million units valued at N7.17 billion, a 11.97% surge compared to the previous day. The number of deals executed also rose to 10,957 from 9,665.
Investor sentiment remained negative, with only seven gainers recorded against 54 losers. Among the gainers were Meyer Plc, which rose by 9.97% to N6.29, Juli Plc, up by 9.52% to N0.92, and Tantalizer, which gained 4.76% to close at N0.44.
However, Nascon Allied Industries, Unity Bank, and Consolidated Hallmark Plc led the decliners’ chart.
The most actively traded stocks driving market activity were Transcorp Plc, Zenith Bank, and United Bank for Africa.
