The Nigerian equities market yesterday sustained its bearish run, with the benchmark index losing 1.20% to close at 98,121.30 points. Despite renewed investor interest in blue-chip stocks such as ZENITHBANK (+1.67%), GTCO (+0.70%), and FCMB (+9.23%), the market was weighed down by significant selloffs in telco heavyweight MTNN (-10.00%), TRANSCOHOT (-10.00%), and FBNH (-9.82%), resulting in an overall negative performance.
The year-to-date (YTD) return slipped to 31.22%, reflecting the challenging trading environment, as market capitalization shed ₦673.16 billion to close at ₦55.49 trillion.
Trading activities showed a higher trade turnover compared to the previous session, with the value of transactions increasing by 22.10%. A total of 395.75 million shares valued at ₦9.58 billion were exchanged in 7,907 deals. GTCO (+0.70%) led both the volume and value chart, with 81.41 million units traded in deals worth ₦2.93 billion.
The market’s downturn was primarily influenced by the significant decline in the share prices of key players, notably MTNN, TRANSCOHOT, and FBNH. Despite the positive performance of select blue-chip stocks, the prevailing selling pressure outweighed buying interest, resulting in the overall negative sentiment.
Investors remain cautious amid lingering concerns over macroeconomic uncertainties, regulatory changes, and global market volatilities. The bearish sentiment reflects the prevailing risk-off sentiment in the market, as investors continue to reassess their investment strategies in light of evolving market dynamics.
As market participants navigate the challenging landscape, analysts at Coronation Research anticipate increased volatility in the near term, with a potential for further downside risks. However, they say opportunities may arise for strategic investors to position themselves for long-term gains amidst the prevailing market corrections. They urge stakeholders to remain vigilant and proactive in their investment decisions, keeping abreast of market developments and seeking guidance from reputable financial advisors to mitigate risks and optimize returns in the current market environment.
