The nation’s stock market extended losses for the ninth session on Wednesday as investors sold off shares from the relatively liquid banking and consumer goods sectors.
The market value of equities listed on the Nigerian Stock Exchange declined to N12.803tn from N12.883tn on Tuesday.
The NSE All Share Index dropped to 35,069.34 basis points from 35,288.23bps, tracking a 2.1 per cent fall on the MSCI emerging market index, which also entered a technical bear market, according to Reuters.
Thirty-nine companies recorded losses on Wednesday, while only 12 appreciated at the end of trading.
“Market sentiment shows little signs of improvement as major indicators remain negative,” one trader was quoted by Reuters as saying.
Nigeria’s stock market, once seen as a darling of frontier investors, has slipped to become one of the worst performers in Africa but its decline should open up buying opportunities for long-term investors, analysts say.
Equities have fallen by more than 20 per cent so far after peaking in January. They rose by 42 per cent last year.
Stocks started to ease in late January after the market was hit by a global risk-averse sentiment, amidst rate rises in the United States which reversed capital flows to frontier markets.
Mounting concerns over political risk in the run-up to next year’s presidential election where incumbent MuhammaduBuhari will seek re-election have accelerated losses for the stock market.
The index of the nation’s top 10 lenders shed 1.03 per cent while consumer goods stocks dropped by 1.47 per cent to drag the main index down.
UAC Property Development Company Plc, which fell by 10 per cent, led the losers on Wednesday. Berger Paints Nigeria Plc shed 9.72 per cent, OandoPlc was down nine per cent and Diamond Bank lost 4.35 per cent.
