Equities Investors Lose N290bn in Ongoing Stock Market Rout
Nigerian stocks tumbled for the third consecutive trading session in the equities market as a positive real return on fixed interest securities impacted investors’ sentiment. Hence, the Nigerian Exchange (NGX) benchmark all-share index fell as more investors continued to exit their positions in the domestic bourse.
For three days in a row, the equities market has posted losses after a huge negative close reported last week. The market performance was impacted by losses in NB (-5.6%), TRANSCORP (-8.2%), WEMA (8.3%), DANGSUGAR (4.17%), and CAVERTON (10%), among other decliners.
According to data obtained from the Nigerian bourse, the market index fell by 0.44%, shedding 467.77 basis points to close at 106,436.48. Meanwhile, equities market capitalisation was down by 0.43%, losing ₦289.61 billion to settle at ₦66.65 trillion on Wednesday.
In a note, Atlass Portfolios Limited attributed the divergence in these indicators to the listing of 1,104,386,890 ordinary shares at ₦2.80/s, resulting from the conversion of Ellah Lakes Plc’s 3,092,283,294.81 debt to equity on the exchange today.
“This development contributed to adjustments in market capitalization figures, even as broader market sentiment remained weak”, stockbrokers said. The downturn was primarily driven by sustained sell pressure in key stocks across major sectors, reflecting cautious investor sentiment.
Equities market activities were also mixed, as total volume traded decreased by 1.49% while the total value trade was up by 29.05%. According to Atlass Portfolios Limited, approximately 389.57 million units valued at ₦11,309.47 million were transacted across 11,427 deals.
In terms of volume, FIDELITYBK led the activity chart, accounting for 12.33% of the total volume of traded in the market, followed by ACCESSCORP (9.16%), UBA (7.47%), JAIZBANK (6.95%), and ZENITHBANK (5.57%), rounding out the top five.
OKOMUOIL emerged as the most traded stock in value terms, accounting for 22.48% of the total value of all transactions conducted on the exchange. TANTALIZER topped the advancers’ chart with a price appreciation of 9.64 percent, trailed by CHAMPION (+7.69%), CWG (+5.70%), DEAPCAP (+5.56%), NAHCO (+3.19%), GUINEAINS (+3.17%), and five others.
Stockbrokers reported that forty-two stocks depreciated in the local bourse amidst weakening investors’ sentiments. CAVERTON was the top loser, with a price depreciation of – 10.00%, followed by CONHALLPLC (-9.87%), ETERNA (-9.66%), FTNCOCOA (-9.52%), TRANSCORP (-8.19%), and DANGSUGAR (-4.17%).
Today, the market breadth closed largely negative, recording 11 gainers and 42 losers. Also, the market sectoral performance was negative, as four of the five major market sectors were down.
The insurance sector dropped by 3.88%, followed by the consumer goods sector which shed 1.51%. The banking sector declined by 0.83%, and the Oil & Gas sector fell by 0.07%. The Industrial sector closed unchanged. UBA, ACCESS Drive Intraday Gain in Equities Market
