Nigerian Exchange Slumps as Equities Investors Lose N455bn
Due to sell pressure, the Nigerian Exchange (NGX) market capitalisation plunged sharply on Wednesday, reducing equities investors’ portfolio value by N445 billion after disinflation.
The local bourse closed negative following the announcement that Nigeria’s rebased consumer price index increased to 24.2% after a two-month disinflation experience.
This stokes pressures in a market that has already been plagued with a massive stock-selling rally, year-to-date return moderated, and other key performance indicators retreated.
The trading session closed in the red midweek, with key market performance indicators—the all-share index and market cap—both dropping by 0.68%.
The downturn, which erased the previous day’s gains, was primarily driven by sell-offs and dividend mark-down effects observed in some medium- and large-cap stocks, particularly within the banking sector.
Despite a positive market breadth, the session ended with a significant decline in investors’ wealth. The market index, or the All-Share Index, decreased by 708.14 basis points today, representing a decline of 0.68% to close at 103,851.88 index points.
However, the market activities were mixed, as the total volume of all transactions reduced by 4.64%, while the total value traded increased by 26.12%. In its note, Atlass Portfolios Limited reported that approximately 351.66 million units valued at ₦13,710.52 million were transacted across 12,141 deals.
In terms of volume, ACCESSCORP led the activity chart, accounting for 19.57% of the total volume of traded on the exchange, followed by GTCO (10.55%), FCMB (8.25%), UBA (7.57%), and CHAMS (7.06%), rounding out the top five.
GEREGU emerged as the most traded stock in value terms, accounting for 37.53% of the total value of trades on the exchange.
ABBEYBDS topped the advancers’ chart for today with a price appreciation of 9.99 percent, trailed by SOVRENINS (+7.69%), NGXGROUP (+7.30%), FIDELITYBK (+6.74%), DEAPCAP (+6.67%), ELLAHLAKES (+6.62%), and nineteen others.
Nineteen stocks depreciated, according to data from the Nigerian bourse. IMG was the top loser, with a price depreciation of -10.00%. Other decliners include DAARCOMM (-7.94%), CUSTODIAN (-5.62%), CHAMS (-4.76%), ZENITHBANK (-3.93%), and GTCO (-1.58%).
At the close of the trading session, the market breadth closed positive, recording 25 gainers and 19 losers. However, the market sectoral performance ended on a mixed note, with two out of the five key sectors recording gains.
The insurance and consumer goods sectors led the advance, rising by 0.80% and 0.34%, respectively. On the other hand, the banking and Oil & Gas sectors closed in the red, dropping by 4.67% and 0.05%, respectively.
Meanwhile, the industrial sector closed unchanged after today’s trading session. Overall, the equities market cap of the Nigerian Exchange fell by ₦445 billion to close at ₦65.26 trillion. Lagos Partners REA to Boost Renewable Energy
