Bears Take Charge as Nigerian Stock Market Suffers N50 Billion Loss

The Nigerian stock market started the week on a bearish note as losses in Nestle Nigeria Plc and 24 other companies led to a decline in the overall market capitalization by N50 billion on February 27, 2024.

The All Share Index (ASI) dropped 92.77 points, representing a 0.09 per cent loss to close at 101,995.53 points.

Market capitalization also decreased, closing at N55.811 trillion.

Medium and large capitalised stocks, such as Nestle Nigeria, Presco, Dangote Sugar Refinery, Eterna, and Fidson Healthcare, contributed to the downturn.

United Capital Plc anticipates the bearish sentiments to persist in the local equities market due to recent developments in the fixed-income market.

High yields in the fixed-income market are driving sell-offs as investors switch their asset classes to less risky assets.

Market breadth was positive with 28 stocks gaining relative to 25 losers. NASCON Allied Industries recorded the highest price gain of 10 per cent to close at N66.00 per share.

Juli followed with a 9.83 per cent increase, closing at N2.57, while FBNH Holdings (FBNH) rose by 9.68 per cent to close at N34.00 per share.

Wapic Insurance and DAAR Communications also recorded gains.

On the other hand, Nestle Nigeria led the losers’ chart with a 10 per cent decline, closing at N990.00 per share.

Eterna, Fidson Healthcare, CWG, and SUNU Assurance also experienced significant losses.

The total volume traded increased by 1.14 per cent to 294.325 million units, valued at N6.723 billion, and exchanged in 9,957 deals.

Transactions in the shares of FBNH topped the activity chart with 73.835 million shares valued at N2.416 billion.

United Bank for Africa (UBA), Zenith Bank, Fidelity Bank, and Veritas Kapital Assurance also saw significant trading activity.

The Nigerian stock market experienced a bearish start to the week, with the market capitalization losing N50 billion due to losses in major companies.

Investors are advised to keep an eye on the market and make informed decisions based on the latest developments in the fixed-income market and the possible interest rate hike by the Monetary Policy Committee (MPC).