The Nigerian stock market opened the week on a negative note, recording a decline of ₦22 billion in market capitalization following widespread losses across several major stocks. The dip was largely attributed to sell pressure in blue-chip and mid-tier equities, particularly Nestle Nigeria Plc, Fidelity Bank, Oando, United Bank for Africa (UBA), and Africa Prudential.
By the close of trading on Monday, the All-Share Index (ASI) had slipped by 33.72 points, translating to a marginal 0.03 percent loss and closing at 104,529.62 points. In tandem with the ASI, the market capitalization fell from the previous level to ₦65.685 trillion, reflecting waning investor confidence in the short term.
Market analysts at United Capital Plc have pointed to ongoing macroeconomic conditions as a driver of the prevailing bearish sentiment. According to the firm, the elevated interest rate environment in the fixed-income market continues to divert investor attention away from equities. Moreover, the looming Monetary Policy Committee (MPC) meeting scheduled for May is prompting a cautious stance from investors. As a result, many participants are adopting a wait-and-see approach, while some retail investors are opting to lock in recent gains through profit-taking, leading to increased selloffs.
Despite the negative headline numbers, market breadth – a measure of investor sentiment – closed on a positive note. Twenty-eight stocks recorded gains, compared to 24 that declined. This indicates that while the overall market closed lower, there was still strong interest in select equities.
Abbey Mortgage Bank led the gainers’ chart with a 9.95 percent increase, closing at ₦6.74 per share. It was closely followed by UPDC, which rose by 9.82 percent to ₦3.13, and Guinea Insurance, which gained 9.52 percent to settle at 69 kobo per share. Other notable gainers included VFD Group, which appreciated by 9.46 percent to close at ₦96.00, and Sovereign Trust Insurance, which added 9.41 percent to end the day at 93 kobo.
On the other end of the spectrum, International Energy Insurance topped the list of laggards with a 9.76 percent decline, closing at ₦1.48 per share. Consolidated Hallmark Holdings fell by 8.33 percent to ₦2.75, while Japaul Gold & Ventures lost 7.46 percent to settle at ₦1.86. Chams Holding Company and NEIMETH International Pharmaceuticals also posted losses of 6.98 percent and 6.94 percent, respectively.
Trading activity saw a noticeable uptick, with total volume rising by 12.69 percent. Investors exchanged 428.16 million shares valued at ₦10.52 billion across 14,583 deals. Access Holdings led the volume chart with 55.99 million shares worth ₦1.15 billion traded. It was followed closely by Zenith Bank, which recorded 55.43 million shares valued at ₦2.76 billion. Fidelity Bank, UBA, and Guaranty Trust Holding Company (GTCO) also featured prominently on the most active list.
As the market continues to navigate economic headwinds and anticipate policy direction from the MPC, investor caution is likely to persist. However, pockets of optimism remain, especially for fundamentally strong stocks with attractive valuations and growth prospects.
