By Seun Ibiyemi
Trading on the Nigerian equities market closed on a bearish note on Tuesday as investors lost N726 billion, reversing the gains recorded in the previous trading session and ending a three-day bullish run.
At the close of trading on the Nigerian Exchange Limited (NGX), market capitalisation declined by 0.57 per cent, dropping from N126.583 trillion at the start of the session to N125.857 trillion.
Similarly, the All-Share Index shed 1,130.87 points, or 0.57 per cent, to close at 196,066.11, down from the opening level of 197,196.98. The development also reduced the market’s Year-To-Date return to 26 per cent.
The downturn was largely driven by selloffs in several stocks including Mutual Benefits, NASCON, Red Star Express, Austinlaz and SCOA, alongside 39 other declining equities.
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Market breadth closed negative, with 44 stocks recording losses compared to 33 gainers during the trading session.
Among the laggards, NASCON Allied Industries Plc and Mutual Benefits Assurance Plc led the losers’ chart, each declining by 10 per cent to close at N147.60 and N4.59 per share respectively.
Red Star Express Plc fell by 9.94 per cent to settle at N28.55, while Austin Laz & Company Plc dropped by 9.88 per cent to close at N3.74. SCOA Nigeria Plc also declined by 9.85 per cent to end the session at N27.90 per share.
On the gainers’ side, Premier Paints Plc topped the chart with a 9.97 per cent increase to close at N17.65 per share.
It was followed by Conoil Plc, which gained 9.95 per cent to settle at N204.40, while Sunu Assurances Nigeria Plc rose by 9.95 per cent to close at N4.75.
DAAR Communications Plc added 9.84 per cent to end the session at N2.01, while Eterna Plc appreciated by 9.56 per cent to close at N51 per share.
Trading activity also weakened during the session as total volume traded declined by 2.06 per cent to 746.85 million shares valued at N27.85 billion across 65,275 transactions.
Access Holdings Plc recorded the highest trading volume with 80.26 million shares, accounting for 10.75 per cent of the day’s total volume.
Meanwhile, Zenith Bank Plc posted the highest value of transactions at N3.29 billion, representing 11.82 per cent of the day’s total traded value.
Reacting to the development, Vice President of Highcap Securities Ltd., David Adonri, attributed the market decline largely to prevailing market forces.
According to him, more investors are currently selling stocks to take profits than those buying, a trend linked to the near conclusion of the earnings season as most listed companies have already released their financial results and proposed dividends.
Adonri noted that the market typically experiences a slowdown after the earnings season.
He also pointed to the ongoing tensions involving Iran as a factor beginning to weigh on investor sentiment.
He explained that when geopolitical tensions escalated last week and crude oil prices surged, investors increased their exposure to petroleum stocks.
However, the recent decline in crude oil prices has reduced demand for those equities.
Adonri further warned that potential disruptions to global trade arising from the conflict could negatively impact Nigeria’s import-dependent economy.
According to him, any global inflation triggered by the conflict could spill into Nigeria through rising costs of imported goods.
