The Nigerian equity market experienced a significant downturn on Monday, shedding N93 billion, echoing the global market’s broader decline.
The All-Share Index (ASI) and market capitalisation dropped by 0.17 per cent, closing at 97,582.41 points and N55.40 trillion, respectively. This slump was reflected in the day’s trading, which saw 9,738 transactions amounting to N6.217 billion, with 324.02 million units of shares traded.
The market breadth was negative, with 23 equities advancing while 25 declined. International Breweries, Presco Plc, and Sovereign Trust Insurance emerged as the top gainers, each recording a 10 per cent increase to close at N4.62, N485.10, and N0.55, respectively. On the flip side, Chams Plc led the losers with a 10 per cent drop to N1.98, followed by University Press Plc, which fell by 9.92 per cent to N2.18, and The Initiate Plc, which decreased by 8.26 per cent to N2.
The trading volume surged by 54 per cent to 324.02 million shares, while the number of deals rose by 47 per cent to 9,738. Zenith Bank recorded the highest volume of traded shares at 37 million, followed by United Bank for Africa with 35 million, Veritas Kapital Assurance with 25.5 million, and Oando with 20.3 million shares.
International markets also faced significant losses on Monday, spurred by investor fears of a potential recession in the United States. This sentiment was driven by a weak US July payroll report, which showed an increase in the unemployment rate to 4.3 per cent, the fourth consecutive monthly rise. The nonfarm payrolls rose by only 120,000, falling short of the expected 200,000.
Mark Dowding, Chief Investment Officer at BlueBay Asset Management, commented on the market sell-off, stating, “In our assessment, a lot of this has been down to position capitulation as a number of macro funds have been caught the wrong way around on a trade, and stops have been triggered, initially starting with FX and the Japanese yen.”
Ratecaptain reported a turbulent week for the Nigerian stock market last week, with a 0.46 per cent decline, resulting in the market closing at 97,745.73 points and N55.50 trillion, marking a loss of N438 billion.
As the global equity markets continue to react to economic uncertainties, the NGX’s performance remains closely tied to these broader trends, underscoring the interconnectedness of global financial markets.
