NGX Declines by N183bn as Buying Sentiment Fades

The market capitalisation of the Nigerian Exchange (NGX) declined by more than N183 billion on Tuesday as equities investors, and stockbrokers sold off shares in banking, and consumer goods.

The negative trade plunged the local exchange downward amidst earnings released by listed companies. Reversing the previous day’s gain, as the market performance indicators dropped by -0.33%. According to stockbrokers, profit-taking across some major market sectors dragged yield to return lower further amidst signal the equities market has hit an overbought line.

NGX data showed that the market index All-Share Index decreased by 334.62 basis points today, representing a decline of -0.33% to close at 101,707.70. However, market activities ended on a mixed note.  The total volume traded for the day increased by +8.56%, while the total value traded reduced by -16.09%, according to Atlass Portfolios Limited.

Stockbrokers reported that approximately 263.19 million units valued at ₦4,300.63 million were transacted in 8,614 deals. VERITASKAP was the most traded stock in terms of volume, accounting for 18.67% of the total volume of trades. The company was followed by UBA (9.26%), FIDELITYBK (7.64%), TRANSCORP (6.82%), and ZENITHBANK (6.10%) to complete the top 5 on the volume chart.

UBA was the most traded stock in value terms, with 13.67% of the total value of trades on the exchange. HONYFLOUR topped the advancers’ chart for today with a price appreciation of 9.92 per cent. The food producer company stock was trailed by JULI with (+9.90%) growth, CORNERST (+9.88%), ABCTRANS (+9.76%), VERITASKAP (+9.59%), NCR (+9.09%), ROYALEX (+9.09%) and seventeen others.

Based on data from the domestic bourse, twenty-eight stocks depreciated, according to Atlass Portfolios Limited.  PZ was the top loser, with a price depreciation of -9.87%. Other stocks that recorded negative price movements include MORISON (-9.84%), ETRANZACT (-9.70%), GUINNESS (-5.22%), WEMABANK (-5.20%), and ZENITHBANK (-3.79%).

Hence, the market breadth closed negative, recording 24 gainers and 28 losers. In addition, the market sector performance was negative, as three of the five major market sectors were down. The Banking sector declined by -1.85%, followed by the Consumer goods sector which fell by -0.22%, and the Industrial sector was down by 0.10%.

The Insurance and Oil & Gas sectors were up by +1.13% and +0.09% accordingly. Overall, the equities market of the Nigerian Exchange lost ₦183.10 billion to close at ₦55.65 trillion. #NGX Declines by N183bn as Buying Sentiment Fades Naira Steadies as Banks Issue Update on FX Purchase