Nigerian Exchange Drops by N476bn on Huge Executed Sell Orders
The equities market capitalisation of the Nigerian Exchange, NGX, dropped by more than N476 billion due to huge sell orders executed in the local bourse trading platform. The All Share Index (ASI) dipped 1.19% to close at 106,538.60 points as sell side actors went on rampage.
In a note, stockbrokers at Cowry Asset Limited said investors hit the sell button, swayed by a mix of portfolio rebalancing and the ripple effects of Trump’s tariff pronouncements, which sent shockwaves through global markets.
The slump came despite a flurry of positive corporate earnings releases, which, in a perfect world, should have fueled optimism, stockbrokers told investors. Unfortunately, sentiment remained as fragile as ever, leaving the market stuck in bearish territory. In the just concluded week, market capitalisation fell sharply, causing year to date to moderate.
Equities market capitalisation fell by 0.71% week-on week to N66.72 trillion, reflecting additional ordinary shares hitting the board from Ellah Lakes and Fidelity Bank. Data from the Nigerian Exchange revealed that the year-to-date (YTD) return on the ASI dropped to 3.51%.
Investors lick wounds as their combined wealth fell by N476.01 billion, spread across four losing sessions in five trading days. Trading activity wasn’t exactly buzzing either, stockbrokers said.
According to data from the local bourse cited by stockbrokers, total volume edged lower by 1.62% to 1.82 billion units, while trade value took a heavier hit, sliding 8.10% to N47.23 billion.
There was a slight silver lining, though, as total deals ticked up by 1.79% to 64,222 trades, suggesting some pockets of investor activity, Cowry Asset Limited reported.
Across the board, sectoral performance was a sorry sight. Five out of the six tracked sectors ended in the red, with the banking, insurance, and consumer goods sectors leading the decline, shedding 2.87%, 2.33%, and 1.72%, respectively.
The oil and gas index followed suit with a mild 0.19% loss, while industrial stocks barely moved, slipping a marginal 0.01%. The only bright spot in an otherwise gloomy week was the NGX Commodity Index, which managed to stay afloat thanks to bullish price action in Okomu Oil and Aradel Holdings.
In the stock-specific space, Tantalizer served up the biggest gains of the week, skyrocketing 36.3%. Close behind was UHM REIT, jumping 28.6%, while Livestock Feeds, Learn Africa, and NGX Group all secured double-digit gains.
On the flip side, Eterna bore the brunt of selling pressure, tumbling 18.7%, while Transcorp, FCMB, Royal Exchange, and Sovereign Insurance all suffered heavy declines.
Looking ahead, the market appears set for a tug-of-war between bulls and bears, stockbrokers projected. Investors are bracing for the release of top tier banks’ audited financials, a potential catalyst for sentiment shifts. At the same time, the market’s overbought position suggests a period of caution.
That said, smart money will be watching for opportunities in fundamentally sound stocks—because, in times like these, patience and strategy often win the game, Cowry Asset Limited told investors in a note. #Nigerian Exchange Drops by N476bn on Huge Executed Sell Orders Parallel Market Premium Disappears as Naira Exchange Rates Converge
