Nigeria’s equities market drops by N4.7trn in four days

Investors that invested in the Nigerian equities  market have seen their investment wiped out an estimated N4.7trillion of their investment in four  days trading activities this week as blue chip companies sustained downtrend momentum.

The market  capitalization of listed companies  opened for trading at N156.97 trillion on Monday, dropped  by N4.7 trillion to close at N152.3 trillion.

Consequently, the Nigerian Exchange Limited All-Share Index (NGX ASI) opened  for trading at  244,738.74 basis points this week, down significantly by 2.99 per cent  to close for trading at 237,404.92  basis points. 

The market capitalisation , however, since the beginning of trading activities has sustained downward trend, dropping N983.88 billion on investors profit taking in Aradel Holdings Plc and the following day, it dropped further by N782.44 billion over sell-offs in Guaranty Trust Holding Company (GTCO), Zenith Bank, Dangote Sugar Refinery and Nigerian Exchange Group, among others. 

As at the close of trading yesterday, the market capitalisation depreciated by N758.2 billion on surge  profit taking  in Zenith Bank Plc and 50 others. 

Speaking on market outlook for the week, a group  of analysts at Cordros Securities Limited said, “looking ahead, trading activity is likely to remain volatile as investors balance profit taking with selective bargain hunting. Market participants will also monitor the May inflation report expected next week, which could influence expectations for future interest rate decisions.”

Also, Cowry Assets Management Limited stated that “the Nigerian equities market is expected to maintain a cautiously positive tone in the near term, supported by sustained investor interest in fundamentally strong stocks and ongoing portfolio repositioning.

“However, intermittent profit-taking may trigger short-term volatility and reinforce a stock-selective trading environment. 

“Overall direction will likely be driven by macroeconomic developments, earnings results, and relative attractiveness versus fixed income, with gains expected to remain concentrated in high-quality equities.”