Bears decimate equities market as investors suffer N539.09bn loss

Onome Amuge

In a week to forget for investors in the Nigerian equity market, the Nigerian Exchange (NGX) saw a loss of N539.9 billion on the trading floor as market capitalisation of quoted equities dropped from N56.577 trillion to N56.038 trillion. 

The decline contrasted sharply with the previous week’s gain of N121.07 billion.

The All-Share Index (ASI), a barometer of the market’s overall performance, also experienced a decline, falling by 0.95 percent to close at 97,520.54 points from the previous week’s level of 98,458.68 points.

The Nigerian equities market kicked off the week on a positive note, as investors enjoyed gains of N57.53 billion by the end of Monday, September 30th, 2024 trading session.

The upward trajectory, however, was short-lived as the market closed on Tuesday, October 1st, 2024, in observance of the country’s 64th Independence Day celebration.

Following the holiday break, the Nigerian equities market returned to trading on Wednesday, October 2, 2024, only to be met with heavy losses as investors saw a decline of N187.56 billion by the end of the trading session. 

The bearish trend persisted on Thursday, October 3, 2024, as investors lost N671.16 billion, marking a significant setback for the market.

However, the market managed to bounce back on Friday, October 4, 2024, as investors regained some ground, earning a total of N262.10 billion at the end of the day’s trading.

At the end of the week, investors transacted a total of 2.872 billion shares worth N132.811 billion across 39,867 deals on the NGX, compared to the previous week’s trading volume of 3.318 billion shares valued at N45.911 billion across 49,243 deals.

The Consumer Goods industry continued on its run as the most active sector in terms of trading volume and value, contributing 46.68 percent and 79.89 percent to the total equity turnover volume and value respectively, with a total of 1.341 billion shares worth N106.099 billion traded across 4,652 deals.

The Financial Services industry maintained its position as the second most active sector on the NGX, recording 926.615 million shares valued at N14.924 billion traded across 19,174 deals.

Meanwhile, the Oil and Gas industry, another vital sector in the Nigerian economy, emerged third place, with a turnover of 244.638 million shares valued at N7.221 billion transacted across 4,221 deals.

Guinness Nigeria Plc, United Bank for Africa Plc, and Japaul Gold & Ventures Plc were the top three most traded equities on the NGX by volume, with a combined trading volume of 1.708 billion shares valued at N110.766 billion transacted across 5,004 deals. The three stocks constituted 59.47 percent and 83.40 percent of the total equity turnover volume and value respectively.

In a week dominated by bearish sentiment, Deap Capital Management & Trust Plc defied the odds, recording the biggest share price increase percentage at 31.53 percent. Seplat Energy Plc and Triple G followed close behind, posting gains of 21.00 percent and 20.34 percent respectively.

While some stocks managed to buck the trend and increase their share prices, others fared less well. MCNICHOLS suffered the largest decline in share price percentage, shedding 15.63 percent of its value. 

FIDELITY BANK PLC and Dangote Sugar Refinery Plc followed suit, as both companies saw their share prices plummet by 13.33 percent and 12.20 percent respectively, adding to the losses sustained by investors during the volatile week.