Investors lose N333b in three trading sessions amid global downturn

Sell pressure persisted on the equities sector of the Nigerian exchange Limited as the market witnessed three consecutive session of losses, causing investors wealth to dip further by N333 billion in three days.

This downturn aligns with the broader uncertainty in global stock markets, prompting investors to adopt a cautious stance amid ongoing fluctuations. The market capitalisation of the NGX, which reopened for transactions on Monday at N66.769 trillion depreciated by 0.5 per cent to close at N66.436 yesterday.

Similarly, the all-share index dipped by 531.9 points from 106,621.91 to 106,090.38. The downturn was driven by price declines in large and mid-cap stocks, including Conoil, Berger Paints Nigeria, Nigerian Exchange Group, Africa Prudential, and Dangote Sugar Refinery. Analysts at Afrinvest Limited anticipate that profit-taking will continue to shape market sentiment, reinforcing the bearish trend.

Investor sentiment remained weak, as market breadth closed negative with 19 stocks advancing while 32 declined. Tantalizer emerged the highest price gainer of 9.79 per cent to close at N3.14 kobo. Secure Electronic Technology followed with a gain of 9.68 per cent to close at 68 kobo, while Caverton Offshore Support Group rose by 9.09 per cent to close at N3.

FTN Cocoa processors grew by 6.51 per cent to close at N1.80, while Jaiz Bank rose by 6.04 per cent to close at N3.51 kobo. On the other side, Conoil led the losers’ chart with 10 per cent to close at N331.20 kobo. Berger Paints followed with a decline of 9.81 per cent to close at N18.85, while International Energy Insurance shed 9.79 per cent to close at N1.75 kobo.

Multiverse Mining & Exploration declined by 9.66 per cent to close at N7.95, while Regency Alliance Insurance dipped by 8.7 per cent to close at 63 kobo. The total volume traded rose by 361.8 per cent to 1.499 billion units, valued at N10.259 billion, and exchanged in 11,748 deals. Transactions in the shares of Sovereign Trust Insurance led the activity with 989.733 million shares worth N987.477 million.

Jaiz Bank followed with account of 187.354 million shares valued at N628.093 million, while Secure Electronic Technology traded 43.512 million shares valued at N28.621 million. Zenith Bank traded 22.81 million shares worth N1.085 billion, while United Capital traded 18.282 million shares worth N346.426 million.

Meanwhile, the U.S. stock market is facing heightened volatility, driven by economic and geopolitical factors. As of March 12, 2025, U.S. stocks have suffered a massive decline, wiping out over $4 trillion in value.

The SPDR S&P 500 ETF Trust (SPY) is down 0.79 per cent to $555.92, while the Dow Jones Industrial Average ETF (DIA) has dropped 1.13 per cent to $414.74. The tech-heavy Invesco QQQ Trust Series 1 (QQQ) slipped 0.18 per cent to $471.6.

This downturn has effectively erased gains since President Donald Trump’s election, with the S&P 500 falling 9.3 per cent from its February 19 peak. Market giants like Nvidia and Tesla have led the declines, weighed down by recent tariff implementations and trade disruptions that have heightened economic uncertainty. President Trump’s unpredictable policies have also fueled investor anxiety, adding to fears of a looming recession.