Bearish trading wipes N544bn off NGX market value as sell-off persists

Trading on the Nigerian Exchange Limited closed in the red on Tuesday, with equity market capitalisation shrinking to N155.97tn from N156.52tn recorded on Monday. The All-Share Index dropped by 843.42 points to settle at 241,611.23, compared with 242,454.65 previously, as sustained selling pressure hit major sectors.

The N544bn loss extended the downtrend seen across the market. The NGX Main-Board Index slipped to 10,892.14 points, while the NGX 30 Index fell to 8,859.78 points. The NGX Premium Index dropped from 28,662.38 to 28,487.84 points, driven by losses in major financial stocks. The NGX Banking Index slid to 2,490.17 points from 2,536.29 points, and the NGX Consumer Goods Index and NGX Oil/Gas Index closed lower at 4,049.97 and 5,201.49 points respectively. The NGX Growth Index decreased to 27,136.42 points, while the NGX Insurance Index posted a slight uptick, closing at 1,112.50 points.

Trading activity: 429.81m shares exchanged

Investors executed 35,625 trades involving 429.81m shares across all trading boards. The Main Board accounted for the lion's share of volume, generating 346.82m shares exchanged across 20,316 deals. Trading on the Premium Board recorded 66.90m shares in 13,013 transactions. The Growth Board contributed 11.12m shares from 1,167 trades, while the Non-Interest Finance Board and the REITs and Closed-End Funds segment generated 3.25m shares and 1.72m shares respectively.

Gainers and losers

Haldane McCall Plc led the gainers, surging 9.97 per cent to close at N3.20 per share. Veritas Kapital Assurance Plc gained 7.09 per cent to finish at N1.36, while Tantalizers Plc advanced 5.26 per cent to settle at N4.00 per share. RT Briscoe Plc climbed 4.31 per cent to N10.90, Regency Assurance Plc rose 3.66 per cent to N0.85, and Coronation Insurance Plc appreciated 2.27 per cent to close at N2.25. Other notable advancers included International Energy Insurance Plc, Cutix Plc, and Lasaco Assurance Plc.

On the losing side, Red Star Express Plc dropped 10.00 per cent to N16.20 per share. Trans-Nationwide Express Plc tumbled 9.94 per cent to N2.81, while Meyer Plc fell 9.88 per cent to N15.05. Chellarams Plc slid 9.77 per cent to N9.70, Fortis Global Insurance Plc decreased 9.70 per cent to N2.14, and Ava Capital Plc shed 9.49 per cent to close at N7.15. Banking heavyweights also faced downward momentum, with Fidelity Bank Plc declining 6.59 per cent to N20.55 and First Holdco Plc dipping 5.71 per cent to N132.00.

ETPs and fixed income

Activity across alternative asset classes focused on Exchange Traded Products and fixed-income instruments. The ETP segment logged 1,014 trades with total volume of 411,551 units. The Vetiva Consumer Goods ETF gained 3.09 per cent to N57.72, while the Stanbic IBTC ETF 30 and The SIAMPL Pension ETF both shed 10.00 per cent. In the debt securities market, trading volume stood at 7,504 units across four trades, highlighted by transactions in the 11.20 per cent FGN JUN 2027 Sukuk and the 15.75 per cent FGN OCT 2033 Sukuk.

For investors, the persistent sell-off signals weak sentiment across the equities market, with banking and consumer goods stocks bearing the brunt. The continued fall in market capitalisation could weigh on portfolio decisions and reinforce a cautious approach to Nigerian equities in the near term.