The Nigerian Exchange (NGX) experienced a notable decline on Monday, with investors’ wealth decreasing by approximately N220 billion. This drop was primarily due to widespread losses in major sectors. The downturn reflects profit-taking activities and a weak market sentiment, as participants reacted cautiously to prevailing macroeconomic challenges.
At the close of trading, the All-Share Index (ASI) dropped by 0.41% to settle at 98,765.12 points, while market capitalisation fell to N54.03 trillion. Sell-offs largely influenced the bearish outing in key sectors, including banking, consumer goods, and industrial stocks.
The Banking Index weakened as tier-one lenders experienced declines. Additionally, the consumer goods and industrial sectors faced ongoing price corrections. Overall market breadth was negative, with more stocks closing lower than gaining, indicating a general sense of caution among investors.
Despite the downturn, some stocks showed resilience, especially in the oil and gas sector, where renewed demand for certain companies provided some support. Analysts note that market performance may remain mixed in the near term, as investors continue to weigh corporate earnings reports against inflationary pressures and interest rate changes.
Trading activity has further weakened, as both the volume and value of transactions decreased compared to the previous session, indicating a lower risk appetite among investors. Market analysts advise adopting a cautious approach and focusing on fundamentally strong stocks that have demonstrated resilience in volatile conditions.
The N220 billion loss in market value highlights the fragility of investor confidence in the face of ongoing macroeconomic challenges. Analysts believe that consistent policy direction from fiscal and monetary authorities, along with improved corporate disclosures, will be crucial in restoring momentum to the equity market.
