Kelechukwu Mgboji 
Investors in equities at the Nigerian Exchange (NGX) lost a total of N33 billion in the month of August as valuation of their shares declined from N55.513 trillion at the start of the month to N55.477 trillion as at Friday, August 30.
Similarly, NGX All-Share Index (ASI) dipped from 97,774.22 points to 96,579.54 points, representing a modest decline of 0.80 per cent in August.
The downturn was largely driven by a sell-off in Industrial Goods sector, which plummeted sharply by 13.08 per cent and erased gains recorded in the oil & gas, insurance, consumer goods, and banking sectors.
During the month under review, the NGX Banking Index led the pack with a 6.52 percent gain, followed by the NGX Consumer Goods Index at 4.88 per cent, NGX Insurance and Oil & Gas Indices surged by 11.67 per cent and 22.45 per cent, respectively.
Two weeks before the final week of August, stocks recorded significant losses. However, the week ended August 30 marked a positive turn for the market, closing up 0.63 per cent, its first weekly close in three weeks.
Some stockbrokers, who spoke to New Telegraph, said the Q2 gross domestic product (GDP) growth report of 3.19 per cent year-on-year lifted the market. According to the National Bureau of Statistics (NBS), Nigeria’s Q2 GDP grew by 3.19 per cent yearon-year, up from 2.51 per cent in Q2’23 and 2.98 per cent in Q1’24.
However, analysts see market exhaustion in their outlook of equities trading in the month of September, saying that the market is in dire need of fresh impetus to support demand against the backdrop of huge sell-off.
“We believe the absence of a near-term catalyst will likely tilt overall market sentiment toward the negative, and likely drive negative performances consequently.
In the medium term, we expect investors’ sentiments to be influenced by developments in the macroeconomic landscape and the movement of yields in the fixedincome market,” analysts at Cordros Research stated in an emailed report last weekend.
Also commenting, Mr. David Adonri, a senior stockbroker, told our correspondent that the market reform sentiments, which drove bullish trend in the last one year, had ran out, adding that there were no positive fiscal action on the part of government to sustain the initial sentiments.
“The market was driven by market reform sentiments. But that euphoria has dissipated because there is no positive fiscal action from government to drive demand. The reforms only addressed the supply side of the market without addressing the demand side.
Investors have comer to realized this and are now selling down on their portfolios,” said the senior dealing member of the Nigerian Exchange.
