The stock market closed the past week on a bearish note, significantly influenced by the escalating prices of petrol. The trading week saw heightened volatility, attributable to the energy sector's ongoing struggles, and culminated in a decline in market indices.

Investors responded with caution as petrol prices surged to between N855 and N1,000 per liter. This considerable rise in fuel costs ignited concerns about increased operational expenses across industries, leading to a ripple effect in market sentiment.

The All-Share Index (ASI) experienced a marked drop as investors sold off shares in a bid to avoid potential losses. Energy-dependent industries such as manufacturing and transportation were particularly hard-hit, compounding the bearish sentiment in those sectors. The ASI fell by 2.3%, further exacerbated by an exodus of foreign investors wary of the domestic economic climate.

Analysts noted that the market's reaction was not entirely unexpected. With petrol being a pivotal input for various sectors, the sharp increase in its price implies higher production costs, reduced profit margins, and potentially, inflated prices for consumers. Companies are expected to pass some of these increased costs onto consumers, which may stifle demand and slow economic growth.

The banking sector also witnessed a downturn as investor confidence waned. Financial stocks, usually considered safe-haven investments, were not spared. Major banks saw their stock values dip by an average of 1.5%. Investors feared that the rising energy prices could lead to an increase in non-performing loans, especially from the more vulnerable sectors of the economy.

Despite the overall bearish trend, a few sectors managed to resist the widespread selling. The technology sector saw some resilience, buoyed by its relatively lower dependency on petrol and energy costs. Tech companies reported minimal declines or stable stock prices, as investors saw them as more insulated from the fuel price hikes.

Market experts have advised a cautious approach in the near term. They advocate focusing on sectors less affected by fuel price fluctuations, such as technology and certain consumer goods, which may present opportunities amidst the volatility. Long-term investors are advised to hold their positions and avoid panic selling, as the market is likely to correct once the energy situation stabilizes.

Additionally, there is speculation around potential government intervention. Market participants are closely monitoring any policy changes or subsidies that might be introduced to mitigate the impact of the soaring petrol prices. Any favorable policies could help stabilize the market and restore investor confidence.

In the interim, it is expected that the stock market will continue to exhibit signs of stress as the