The Nigerian Exchange (NGX) extended its bearish run as investors lost N265 billion in market value, deepening concerns over persistent sell-offs and weak market sentiment. The downturn, which has affected several key sectors, reflects growing investor caution amid economic uncertainties and global financial pressures.
The latest decline saw the NGX All-Share Index drop further, erasing gains recorded earlier in the year. Analysts attribute the losses to profit-taking by investors, concerns over inflation, and fluctuations in foreign exchange rates. The banking, consumer goods, and industrial sectors were among the hardest hit, with major stocks recording price declines.
Market watchers suggest that investors are adopting a wait-and-see approach, assessing macroeconomic conditions before making significant moves. The recent dip in liquidity, coupled with cautious trading, has contributed to the sustained downward trend. However, some analysts believe the market could stabilize if positive economic indicators emerge, including policy interventions or stronger corporate earnings.
Despite the losses, long-term investors remain optimistic about the market’s resilience, noting that bargain-hunting opportunities may arise as stock prices adjust. In the short term, however, volatility is expected to persist, with traders closely monitoring developments in the economy and regulatory landscape.
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