Investors’ Negative Sentiment Drags Stock Market YtD Performance to 28.97%

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The Nigerian stock market has experienced a decline, with the Year-to-Date (YtD) performance dropping to 28.97% due to profit-taking in fundamental stocks.

The Nigerian Exchange Limited (NGX) All-Share Index (ASI) had seen a significant increase of 33.8% in the first half of 2024 but fell by 3.5% between July and August, closing August at 96,579.54 basis points.

The market further dropped by 0.15% in the first week of September, closing at 96,433.53 basis points.Sector performance showed mixed results, with the NGX Oil & Gas index gaining 1.48%, while the NGX Insurance, Consumer Goods, and Industrial Goods indices declined by 4.76%, 1.18%, and 0.13% respectively.

Market breadth was negative, with 36 stocks appreciating and 46 depreciating.

Significant movers included Industrial & Medical Gases Nigeria, which gained 32.58%, and R T Briscoe, which declined by 27.61%. Total turnover for the week was 2.141 billion shares worth N51.217 billion, down from the previous week.

Analysts anticipate mixed market sentiment in the coming week, with potential for increased position-taking and portfolio reshuffling as investors await interim dividend announcements from banks. While some analysts see signs of recovery and advise focusing on fundamentally sound stocks, others predict cautious trading and selective buying.

Investors are advised to take advantage of price corrections and stay informed about both domestic and global market trends.

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