The Nigerian Equity Market experienced a downturn on the first trading day of the week on Monday mirroring the broader global market decline.

This decline resulted in a N93bn loss in market capitalisation which now stands at N55.40tn.

The All-Share Index fell to 97,582.41 points, down 0.17 per cent from the previous close of 97,741.86 points.

The day trading saw 9,738 transactions totalling N6.217bn, with 324.02m units of shares exchanged. The market breadth was negative, as 23 equities gained while 25 equities saw their prices drop.

Among the top gainers were International Breweries, Presco Plc, and Sovereign Trust Insurance, each posting a 10 per cent increase to close at N4.62, N485.10, and N0.55, respectively.

Conversely, Chams Plc led the losers with a 10 per cent decline to close at N1.98, followed by University Press Plc, which shed 9.92 per cent to close at N2.18, and The Initiate Plc, down 8.26 per cent to end at N2.

The trading volume saw a 54 per cent increase to 324.02m shares, and the number of deals rose by 47 per cent to 9,738. Zenith Bank recorded the highest volume of 37m traded shares, with United Bank for Africa, Veritas Kapital Assurance, and Oando following with 35m, 25.5m, and 20.3m shares, respectively.

This downturn in the Nigerian market is part of a larger global trend. International share markets also tumbled on Monday as investors reacted to fears of a potential recession in the United States.

According to Newsweek, this market shift was prompted by a weak US July payroll report, which revealed an increase in the unemployment rate to 4.3 per cent, the fourth consecutive monthly rise. The report also indicated a significant shortfall in nonfarm payrolls, which rose by only 120,000 against expectations of 200,000.

Also, according to Reuters, the chief investment officer at BlueBay Asset Management, Mark Dowding, said “In our assessment, a lot of this (market sell-off) 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”.

PUNCH reported that in a turbulent week for the Nigerian stock market, the All-Share Index and market capitalization experienced a downturn, depreciating by 0.46 per cent and 0.19 per cent, respectively. This decline resulted in the market closing at 97,745.73 points and N55.50tn, respectively, marking a loss of N438bn.

Last updated on September 13th, 2024 at 09:18 pm