The Nigerian equity market faced a tumultuous month in August, with investors losing a significant sum of N36.04 billion. This downturn was attributed to multiple dips experienced throughout the month, as revealed by data from the Nigerian Exchange Limited (NGX).
Market Capitalization and All-Share Index
The market’s overall value, as measured by market capitalization, decreased by 0.05 percent to ₦55.48 trillion at the close of August from ₦55.51 trillion at the end of July. The all-share index, which tracks the performance of all listed companies on the NGX, also exhibited a mixed performance during the month.
Weekly Performance
The first week of August witnessed a positive trend, with both the all-share index and market capitalization appreciating by 0.87 percent. However, this momentum reversed in the following week, with a decline of 1.51 percent. The third week saw a further drop of 1.16 percent, but the market managed to recover slightly in the final week with a 0.63 percent rise.
Sectoral Analysis
The financial services sector emerged as the dominant force in the market throughout the four weeks of August. In terms of both volume and value, this sector accounted for a substantial portion of the overall trading activity.
First Week: Investors traded 2.68 billion shares valued at ₦49.02 billion in 47,451 deals.
Second Week: Trading activity dipped slightly, with 2.03 billion shares worth ₦42.16 billion exchanged in 45,157 deals.
Third Week: A surge in trading volume was observed, with 5.64 billion shares valued at ₦33.05 billion traded in 42,006 deals.
Fourth Week: The volume declined again to 2.821 billion shares worth ₦53.04 billion in 50,488 deals.
Overall Trading Activity
In total, investors traded a significant 13.17 billion shares valued at N177.27 billion in 185,102 deals throughout August. The financial services sector accounted for 10.19 billion shares valued at N91.34 billion, followed by the oil and gas industry with 974.685 million shares worth ₦33.723 billion.
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Individual Stock Performance
At the end of the month, 56 equities appreciated, while 26 depreciated, and 69 remained unchanged. Oando led the gainers with a remarkable 60.71 percent increase in its share price, rising from ₦47.85 to ₦76.90. On the other hand, BUA Foods and Academy Press were among the notable decliners, with their share prices falling after dividend payouts.
Global Market Influences
The global equity market also experienced volatility in August, influenced by factors such as shifting sentiment towards big-tech stocks, recession fears in the United States, and an unexpected rate hike by the Bank of Japan. These factors led to significant selloffs in the first half of the month. However, the MSCI World Equity Index demonstrated resilience, advancing by 1.8 percent in the second half, marking its fourth consecutive month of gains.
If You Ask Me
The Nigerian equity market in August was characterized by a mix of gains and losses, ultimately resulting in a net loss of ₦36.04 billion. While the financial services sector dominated trading activity, the market was influenced by both domestic and global factors. Investors will be closely watching the market’s performance in the coming months to gauge its overall direction.
