Investors' Wealth Dips by N1.4 Trillion on NGX as Market Opens Bearish
The Nigerian Exchange Limited (NGX) reopened for the week on a notably bearish note, with investors' wealth plummeting by a staggering N1.376 trillion. This decline was driven by widespread losses across 23 stocks, signaling a cautious start to the trading period amid ongoing market volatility.
Key Market Indicators Show Significant Declines
The All-Share Index (ASI) experienced a sharp drop, losing 2,142.84 points, which translates to a 1.07 per cent decrease, closing at 199,014.02 points. Concurrently, the market capitalisation shed N1.376 trillion, ending the session at N127.750 trillion. This downturn was primarily fueled by price depreciation in large and medium capitalised stocks, including major players such as MTN Nigeria Communications (MTNN), Guaranty Trust Holding Company (GTCO), Nigerian Breweries, Zenith Bank, and Wema Bank.
Expert Analysis on Market Performance
According to Imperial Asset Managers Limited, the market's negative opening was largely attributed to profit-taking activities in banking stocks following a recent rally. Despite this, the firm noted that the positive market breadth indicates investor sentiment remains cautiously optimistic. "Looking ahead, the market may trade mixed in the near term as investors continue portfolio rebalancing, with sustained interest expected in fundamentally sound banking, industrial, and dividend-paying stocks, while profit-taking may persist in recently rallied counters," the analysts stated.
Market Breadth and Stock Performances
Interestingly, despite the overall index decline, market breadth remained positive, with 43 stocks advancing compared to 23 that declined. Among the gainers, Presco emerged as the highest price gainer, rising by 10 per cent to close at N1,871.20 kobo. Other notable advancers included:
- Zichis Agro Allied Industries with a gain of 9.91 per cent to close at N9.43
- John Holt rose by 9.70 per cent to close at N13
- Premier Paints increased by 9.62 per cent to close at N25.65
- Fortis Global Insurance advanced by 9.45 per cent to close at N1.39 kobo
On the losers' side, Consolidated Hallmark Holdings led the chart with a decline of 9.64 per cent to close at N4.50 kobo. Other significant decliners were:
- DEAP Capital Management & Trust fell by 8.37 per cent to close at N5.91
- GTCO shed 8.18 per cent to close at N105
- International Energy Insurance lost 7.67 per cent to close at N2.77
- Nigerian Breweries depreciated by 7.28 per cent to close at N70
Trading Volume and Activity Highlights
The total volume traded saw a substantial depreciation of 86 per cent, amounting to 848.836 million units valued at N53.343 billion, exchanged across 139,458 deals. Transactions in the shares of United Bank for Africa (UBA) dominated the activity chart, with 114.168 million shares worth N5.541 billion traded. Following closely were:
- Wema Bank with 111.951 million shares valued at N2.917 billion
- Access Holdings traded 54.754 million shares valued at N1.423 billion
- Zenith Bank traded 38.172 million shares worth N4.081 billion
- Zichis Agro Allied Industries traded 32.209 million shares worth N272.601 million
This trading session underscores the dynamic nature of the Nigerian stock market, with mixed signals from investor behavior and sectoral performances shaping the financial landscape.
