Nigerian Market Slips as Capitalisation Falls by N69bn Amid Renewed Sell Pressure

The Nigerian equities market opened the week on a gloomy note as sustained sell pressure in 26 stocks dragged market capitalisation down by N69 billion. Investors, still cautious amid ongoing economic headwinds, drove the market deeper into negative territory, extending the bearish sentiment that has dominated recent sessions.

By the close of trading, the All-Share Index (ASI) shed 108.01 points, or 0.08%, to settle at 143,614.61 points. Market capitalisation also slipped to N91.346 trillion, with losses concentrated in medium and large-cap stocks such as Vitafoam Nigeria, UBA, Africa Prudential, Sterling Financial Holdings, and Transcorp. The downturn reflected a softer appetite for equities as traders awaited key economic decisions.

Analysts at Futureview Group noted that investors remain cautious ahead of the upcoming Monetary Policy Committee (MPC) meeting and the FGN Bond auction. Their outlook suggests that while caution will prevail, bargain hunters may still target fundamentally strong stocks trading at attractive valuations.

Market sentiment stayed weak, as seen in a negative market breadth of 17 gainers against 26 losers. Despite the overall dip, a few stocks outperformed, with eTranzact International rising 9.06%, International Energy Insurance gaining 8.49%, and McNichols adding 7%. Others like C&I Leasing and UPDC also recorded notable gains.

On the losing side, NPF Microfinance Bank led with a 7.85% drop, followed by Prestige Assurance, Sterling Financial Holdings, Wapic Insurance, and Deap Capital, which all posted declines. Meanwhile, trading activity improved slightly, with total volume rising 4.04% to 694.8 million units valued at N28.67 billion across 24,041 deals. GTCO dominated activity with over 203 million shares traded, followed by Fidelity Bank, Japaul Gold, FCMB Group, and Access Holdings.

source: The Guardian