NGX Loses N3.52tn As All-Share Index Falls 2.13%

Trading activities on the Nigerian Exchange Limited (NGX) weakened significantly during the week as investors exchanged 2.829 billion shares worth N208.41bn in 192,158 deals, representing a 62.87 per cent decline in volume and a 67.33 per cent drop in value compared with the 7.619 billion shares valued at N637.826 billion traded in 192,138 deals recorded in the preceding week.

The decline in market activity was accompanied by losses in key market performance indicators, with the NGX All-Share Index (ASI) depreciating by 2.13 per cent to close the week at 248,877.22 points, while the total market capitalisation of listed equities fell to N161.59tn.

The decline in market capitalisation represents a reduction of approximately N3.52tn from the previous week’s level, reflecting sustained selling pressure and a cautious investment sentiment across major segments of the equities market.

Despite the sharp reduction in trading volume and value, the number of deals increased marginally by 20, from 192,138 transactions recorded in the preceding week to 192,158 deals during the period under review.

Performance across the broader market was largely negative, as all other indices closed lower, with the exception of the NGX Growth Index, which appreciated by 1.33 per cent.

The NGX Sovereign Bond Index, however, remained unchanged at the end of the trading week.

An analysis of trading activities by sector showed that the Financial Services Industry dominated the equities market, accounting for the largest proportion of transactions by volume.

The sector recorded 1.983 billion shares valued at N126.63bn in 84,899 deals, representing 70.11 per cent of the total equity turnover volume and 60.76 per cent of the total value of transactions during the week.

The Consumer Goods Industry followed with 245.568 million shares worth N15.85bn exchanged in 21,445 deals, while the Agriculture Industry occupied the third position with 160.610 million shares valued at N3.28bn traded in 5,511 deals.

At the individual stock level, First HoldCo Plc, Access Holdings Plc and Honeywell Flour Mill Plc emerged as the three most actively traded equities by volume.

The three companies collectively recorded a turnover of 992.859 million shares valued at N71.04bn in 20,512 deals, accounting for 35.10 per cent of the total equity turnover volume and 34.09 per cent of the total value of transactions recorded during the week.

The performance of equities across the market also reflected the prevailing bearish sentiment, as the number of stocks that recorded price appreciation declined compared with the preceding week, while more equities closed in negative territory.

Specifically, 29 equities appreciated during the week, lower than the 33 recorded in the previous week. Conversely, 57 equities depreciated, higher than the 48 that recorded losses in the preceding week.

Similarly, 60 equities closed unchanged, compared with 65 equities that maintained their previous closing prices in the previous trading week.

The market breadth figures indicate a deterioration in investor sentiment, as declining stocks outnumbered advancing equities by almost two to one, further reinforcing the negative performance of the benchmark All-Share Index during the period.