NGX Loses N93bn As Global Equity Markets Fall

The Nigerian equity market experienced a significant loss on Monday, shedding N93 billion, reflecting a broader decline observed in global markets.

The Nigerian Exchange (NGX) saw its All-Share Index and market capitalisation fall by 0.17 percent, closing at 97,582.41 points and N55.40 trillion, respectively.

Monday’s trading session was marked by 9,738 transactions, totalling N6.217 billion, with 324.02 million units of shares exchanged. Despite the increased trading activity, the market breadth remained negative, with 23 equities gaining while 25 saw their stock prices drop.

The top gainers included International Breweries, Presco Plc, and Sovereign Trust Insurance, each posting a 10 percent rise to close at N4.62, N485.10, and N0.55, respectively.

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

The trading volume saw a notable 54 percent increase to 324.02 million shares, and the number of deals rose by 47 percent to 9,738. Zenith Bank recorded the highest volume of traded shares at 37 million, followed by United Bank for Africa with 35 million, Veritas Kapital Assurance with 25.5 million, and Oando with 20.3 million shares.

International capital markets also experienced turbulence on Monday, driven by investor fears of a potential recession in the United States. According to report, the market shift was triggered by a weak US July payroll report, which revealed an increase in the unemployment rate to 4.3 percent, marking the fourth consecutive monthly rise. Additionally, the report indicated a significant shortfall in nonfarm payrolls, which rose by only 120,000 against expectations of 200,000.

Mark Dowding, Chief Investment Officer at BlueBay Asset Management, attributed much of the market sell-off to position capitulation.

Mr. Dowding explained, “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.”

The Nigerian stock market faced a turbulent week prior, ending down by 0.46 percent. This decline resulted in the market closing at 97,745.73 points and N55.50 trillion, marking a weekly loss of N438 billion.

As global economic uncertainties continue to impact markets worldwide, the Nigerian equity market remains susceptible to external shocks, underscoring the need for robust economic strategies to mitigate these impacts.