The Nigerian stock market took a hit on Tuesday as bearish sentiments dominated trading, wiping out N285 billion from market capitalization. The downturn was primarily driven by losses in major stocks, including MeCure Industries, Associated Bus Company, and Daar Communications.
The All-Share Index (ASI) declined by 454.16 points (0.43%), settling at 106,167.75 points. This extended the market’s one-week decline to 0.69%, reflecting continued investor caution amid prevailing economic uncertainties.
Market Activity Slows
Trading activity also saw a downturn, with data from the Nigerian Exchange (NGX) revealing a 11% drop in volume, a 55% decrease in turnover, and a 13% decline in the number of deals compared to the previous session. A total of 324.58 million shares worth N7.92 billion were exchanged across 12,652 transactions. Market capitalization now stands at N66.5 trillion.
Despite the overall bearish trend, Livestock Feeds led the gainers’ chart, appreciating by 9.93% to close at N9.85 per share. Other top performers included Cornerstone Insurance (+9.25%), International Energy Insurance (+8.99%), and Smart Products Nigeria (+8.33%).
Major Decliners
On the losing end, MeCure Industries saw the steepest decline, shedding 10% to close at N11.25 per share. Associated Bus Company (-7.98%), Daar Communications (-7.46%), and Guinea Insurance (-7.35%) also recorded notable losses.
Banking Stocks Dominate Trades
The banking sector led trading activity, with Fidelity Bank emerging as the most traded stock, exchanging 29.4 million shares. Access Holdings (28.3 million shares), Guaranty Trust Holding (28.1 million shares), and Zenith Bank (22.4 million shares) also saw significant trading volumes.
Mixed Performance Across Sectors
The NGX indices posted mixed results, with the NGX Top 30 Index declining by 0.46% and the NGX Banking Index falling by 0.21%. However, the NGX Insurance Index bucked the trend, gaining 0.87%, driven by renewed investor interest in insurance stocks.
Analysts Predict Continued Bearish Trend
Market analysts at Afrinvest anticipate that the bearish sentiment will persist in the near term due to the absence of strong positive catalysts to drive investor confidence.
“The market remains under pressure, and we expect the bears to maintain their grip unless a significant positive development emerges,” Afrinvest analysts noted.
The downturn comes after the market kicked off the trading week on a positive note, with N52.17 billion added to market capitalization on Monday. However, Tuesday’s losses erased those earlier gains, leaving investors cautious about the market’s short-term outlook.
