By Samuel Bankole
The Nigerian equity market closed in the red on Monday, with the All-Share Index (ASI) dropping by 0.10% to settle at 97,487.14 points, reflecting a downturn in investor sentiment.
The market capitalization of equities listed on the Nigerian Exchange (NGX) slipped to N56.019 trillion from the previous N56.076 trillion, signalling a loss of market value.
Despite the negative market breadth, with 38 decliners outpacing 15 gainers, the NGX 30 Index—a benchmark for large-cap companies—edged higher by 0.22%, closing at 3,647.68 points.
Nigerian Breweries and International Breweries led the gains, while financial heavyweights Sterling Bank and United Bank for Africa (UBA) dragged the index lower.
The trading session saw a total volume of 356.13 million units exchange hands, valued at $6.95 billion across 8,582 deals.
However, the uptick in the NGX 30 Index suggests selective investor interest in larger, more liquid stocks even as the broader market sentiment soured.
READ ALSO: Nigeria’s telecom regulator pushes for stronger fintech framework
On the monetary front, the Overnight (O/N) rate decreased by 0.56% to close at 32.25%, while the Open Buy Back (OBB) rate fell by 0.49% to 31.90%, reflecting some easing of liquidity conditions in the money markets.
In the foreign exchange (FX) market, the Naira continued its depreciation against the U.S. dollar, closing at N1,625.13 per dollar compared to N1,561.76 in the previous session, exacerbating concerns about the country’s currency stability.
Market Outlook
The Nigerian stock market’s decline reflects ongoing uncertainty as macroeconomic challenges continue to weigh on investor confidence.
While select sectors, such as consumer goods represented by Nigerian Breweries, show resilience, broader market volatility is expected to persist.
The weakening Naira, coupled with elevated interest rates, poses further risks to market stability.
Investors will be closely watching for policy signals from the Central Bank of Nigeria, particularly regarding interventions to stabilize the currency and support liquidity in the financial system.
With inflationary pressures and FX volatility looming, the outlook for the Nigerian equities market remains cautious.
(Edited by Oludare Mayowa; omayowa@globalfinancialdigest.com; Newsroom: +234 8033 964 138)
