Energy, Insurance Stocks Drag NGX Index, Investors Lose N440bn
Energy, oil, gas, and insurance stocks dragged the Nigerian Exchange (NGX) market indicators lower, as sell pressure in the local bourse entered its eighth day on Thursday.
The local equities market closed bearish, with the benchmark index dipping 0.30% to 240,037.80 points. Stockbrokers reported profit-taking in ARADEL (-5.40%), UBA (-2.17%), ZENITHBANK (-0.48%), and OANDO (-3.68%).
Similarly, market breadth was weak at 0.50x, as 28 laggards outnumbered 14 gainers. INTENEGINS (-9.85%) and WAPIC (-9.84%) were today’s top losers, while HMCALL (+9.38%) and TRANSEXPR (+8.90%) topped the gainers. The NGX All-Share Index (ASI) declined by 0.30%, while market capitalisation decreased by 0.28%.
The mixed performance was attributed to the additional listing of 15,000,000,000 Ordinary Shares of 50 Kobo each arising from Veritas Kapital Assurance Plc’s Private Placement of 15,000,000,000 Ordinary Shares of 50 Kobo each at N1.00 Per Share.
Specifically, the market index fell by -712.67 basis points to close at 240,037.80, while market capitalisation fell by ₦440.33 billion, representing a decline of 0.28%, settling at ₦154.98 trillion.
The decline, led by losses in the Oil & Gas sector, was driven by sell-offs of medium- and large-cap stocks, including ARADEL, OANDO, and ZICHIS. This sell pressure extended the bearish sentiment to an eighth consecutive trading day.
Total volume of all trades increased by +140.65%, while the total value of all transactions executed in the stock market, on the other hand, declined by 10.11%. Stockbrokers reported that approximately 2,872.01 million units, valued at ₦33,994.69 million, were transacted in 34,725 deals.
FTGINSURE drove volume activity, accounting for 89.09% of all units traded on the local bourse, followed by STERLINGNG (0.98%), TRANSEXPR (0.75%), UBA (0.62%), and FIRSTHOLDCO (0.55%).
ARADEL topped the value chart, accounting for 20.32% of the total transaction value recorded in the market, making it the most actively traded on the exchange.
HMCALL led the gainers chart, up by +9.38%, trailed by TRANSEXPR (+8.90%), MCNICHOLS (+8.33%), CUTIX (+2.56%), VERITASKAP (+1.52%), GUINEAINS (+1.37%), and eight others. A total of twenty-eight (28) stocks depreciated.
With a price depreciation of -9.85%, INTENEGINS topped the worst performers’ chart, followed by WAPIC (-9.84%), FTGINSURE (-9.76%), AVACAP (-7.89%), ZICHIS (-7.36%), and ROYALEX (-5.66%). Hence, market breadth closed on a negative note, with 14 gainers and 28 losers.
Sectoral performance was negative today, with three of the five major market sectors declining.
The Oil & Gas sector led the decline by -2.49%, followed by the Insurance sector (-0.79%), and the Banking sector (-0.41%). The Consumer Goods and Industrial Goods sectors increased by +0.10% and +0.001%, respectively. Companies
