Equities investors on the Nigerian Exchange Limited (NGX) experienced significant losses on Wednesday, with a total of N718.95bn lost. This decline was primarily driven by renewed sell-offs in banking stocks, including major players such as FirstHoldco, Guaranty Trust Holding Company (GTCO), Zenith Bank, and FCMB. The market's overall performance was negatively impacted, resulting in a considerable drop in the All-Share Index.
The market's All-Share Index declined by 1,107.28 basis points, representing a 0.44 per cent drop, to close at 252,882.78 points. Consequently, market capitalisation fell to N164.19tn from its previous level. The bearish performance was largely driven by profit-taking in medium- and large-cap stocks that had recorded recent gains. The banking sector accounted for the biggest decline, contributing significantly to the overall market downturn.
Several stocks experienced significant losses, with FirstHoldco leading the losers' chart, shedding 10 per cent. TrippleG followed, falling 5.51 per cent, while E-Tranzact, Royal Exchange, and FTG Insurance each declined by 4.76 per cent. Livestock Feeds also lost 4.63 per cent. On the other hand, 25 stocks recorded gains, with Sovereign Trust Insurance leading the gainers, appreciating by 10 per cent, followed by Austin Laz at 9.21 per cent and UBA at 6.83 per cent.
Market activity weakened significantly, with total trading volume and value declining by 92.28 per cent and 93.68 per cent, respectively. According to market data, approximately 404.11 million shares, valued at N27.91bn, were traded in 39,012 deals. United Bank for Africa (UBA) accounted for 9.67 per cent of total traded volume, followed by Access Holdings at 7.72 per cent, Zenith Bank at 7.68 per cent, and GTCO at 6.61 per cent.
Dangote Cement topped the value chart, accounting for 17.72 per cent of the total value of transactions on the exchange. The company's performance had a significant impact on the market, contributing to the overall decline. Despite the market's bearish performance, some stocks showed resilience, with CMFC gaining 5.71 per cent, University Press up 4.60 per cent, and TIP rising 4.52 per cent.
Sectoral performance was largely negative, with four of the five major sectors closing lower. The banking sector recorded the steepest decline of 2.36 per cent, followed by industrial goods, down 0.31 per cent. Insurance fell 0.13 per cent, while oil and gas declined 0.03 per cent. Consumer goods was the only sector to close in positive territory, gaining 0.13 per cent.
The decline in equities investors' wealth highlights the volatility of the Nigerian stock market. The market's performance is influenced by various factors, including economic trends, company performance, and investor sentiment. As investors navigate the market, they must consider these factors to make informed decisions. The NGX continues to provide a platform for investors to participate in the capital market, with various stocks offering opportunities for growth and returns.
Key points
- - Equities investors lost N718.95bn on the Nigerian Exchange Limited (NGX) due to sell-offs in banking stocks. - The market's All-Share Index declined by 1,107.28 basis points, representing a 0.44 per cent drop. - The banking sector recorded the steepest decline of 2.36 per cent among the major sectors.
