On Thursday, the Nigerian Exchange Limited experienced a continued bearish trading pattern, resulting in a significant loss of N128 billion for investors. This downturn followed two consecutive sessions of gains, indicating a shift in market sentiment. The All-Share Index saw a decline of 0.21%, closing at 98,081.38, while the market capitalization fell to N59.43 trillion. Notably, trading activity also dipped, with the number of deals, trade volume, and value of trades decreasing to 7,318, 239,308,707 shares, and N6.41 billion, respectively. Despite the overall downturn, the market did witness positive sentiment among some investors, as evidenced by the 29 gainers compared to 16 losers.
Leading the list of gainers was Golden Guinea Brewery, which saw its shares increase by 10% to close at N3.74. Deap Capital Management & Trust followed closely, with a share appreciation of 9.85% to N1.45. TransCorp Power also made a notable gain of 9.68%, closing at N330.90. TransCorp Power recently released its third-quarter report, showcasing impressive financial growth. The company’s revenue surged by 153% to N223.6 billion, a substantial increase from N88.4 billion in the same period the previous year. This remarkable performance was further highlighted by a staggering 198% rise in profit before tax, which hit N81.1 billion compared to N27.3 billion in Q3 2022.
Conversely, the day’s trading was marked by significant losses for several stocks. Newly listed Aradel Holdings experienced a notable decline, shedding 10% of its value to settle at N694.80 after being listed at N702.69 per share. This disappointing performance came just days after its ‘Listing by Introduction’ on Monday. Other notable losers included Regency Assurance, which fell by 8.82% to N0.62, and Daar Communications, which closed at N0.55 after a decline of 6.78%. These losses illustrate the volatility and unpredictability of the market, which can shift rapidly based on a variety of factors, including new listings and investor sentiment.
The trading landscape on Thursday was heavily dominated by banking stocks, indicating a focus on the financial sector amidst the bearish market conditions. Sterling Financial Holding Company led trading volume with 42,786,982 shares exchanging hands, valued at N213.02 million. Zenith Bank was also active, with 20,054,095 shares traded, amounting to an impressive N751.82 million. Additionally, the Guaranty Trust Holding Company Plc saw substantial trading volume with 19,631,545 shares valued at over N1 trillion. This concentration of activity in banking stocks highlights the sector’s significance within the broader Nigerian market, and investors’ continued interest in financial institutions during times of fluctuation.
The recent performance of major companies, particularly in the banking and power sectors, sheds light on the overall dynamics of the Nigerian Exchange. While some companies like TransCorp Power are demonstrating strong growth and financial health, others are facing challenges, impacting their stock performance. This contrast illustrates a bifurcation in investor sentiment, where certain sectors and companies may be viewed as more resilient or promising compared to others that are struggling to maintain their valuations. As a result, investors are likely assessing their portfolios carefully, weighing their options amidst the current bearish trend.
Overall, the bearish trend on Thursday reflects the complex interplay of market forces within the Nigerian Exchange Limited. With significant fluctuations in both gainers and losers, as well as changes in trading volume and activity, investors are urged to remain vigilant. The performance of key players like TransCorp Power suggests that opportunities still exist among companies capable of delivering robust earnings growth. However, caution remains paramount as the market experiences ongoing volatility, with stock prices closely tied to broader economic indicators and investor sentiment. In this environment, strategic trading decisions and a thorough analysis of individual stock performance will be essential for navigating the challenges presented by the current market conditions.
