Equities fall 0.43% as bearish sentiment wipes out N284bn on NGX

Onome Amuge

The Nigerian stock market saw a downtrend on the day as the All-Share Index retreated by 0.43 percent, settling at 106,167.75 points, according to the latest market data. 

The decline in the index mirrored a corresponding 0.43 percent drop in the market capitalisation of equities listed on the Nigerian Exchange Limited (NGX), which fell to N66.48 trillion. The overall effect of the market downturn shaved off N284 billion from investors’ portfolios.

Sectoral performance reflected the general bearish sentiment in the market, with key sectors registering losses across the board. 

The Banking sector retreated by 0.21 percent, dragged down by declines in the stocks of major banks. The Consumer Goods sector also witnessed a drop of 0.28 percent, as consumer-focused stocks were weighed down by investor pessimism.In a similar trend, the Oil & Gas sector shed 0.03 percent, impacted by falling crude oil prices and weak investor demand.

Despite the broad market sell-off, the Insurance and Commodity indices exhibited marginal improvements, gaining 0.46 percent and 0.02 percent respectively. 

The Industrial Goods sector, on the other hand, held its ground, maintaining a neutral position with no significant movement in either direction.

Reflecting the overall market performance, the market breadth tilted towards bearish territory, with 23 advancing stocks overshadowed by 31 declining stocks.

Amid the market turbulence, LIVESTOCK, CORNERST, INTENEGINS, SMURFIT, and LASACO were the leading gainers, supported by bullish investor sentiment and positive market fundamentals.

On the flip side, MECURE, ABCTRANS, DAARCOMM, GUINEAINS, and ROYALEX took the largest hits, dragged down by unfavourable company-specific developments or general investor pessimism.

Amid the ongoing bearish market mood, investor activity experienced a notable slowdown, with the number of deals, trading volume, and value all recording losses of 13.13 percent, 11.06 percent, and 55.08 percent respectively.

The overall number of transactions during the trading day dropped to 12,652, while the total traded volume of shares reached 324.59 million.

The value of trades also shrank, falling to N7.92 billion, as investors remained cautious and hesitant in the face of market uncertainty.