Nigerian Exchange Deals Up 42.6% Despite N35bn Loss In Market Cap

The Nigerian Exchange recorded a surge in deals by 42.6 per cent to 53,932 on Monday, despite a N35 billion loss in market capitalisation, as retail investors dominated trading while institutions stood back.

The NGX All-Share Index declined by 0.02 per cent to close at 254,245.21 points, while market capitalisation shed N35 billion to N165.08 trillion. The year-to-date return remains strong at 63.38 per cent.

Trading activity slowed sharply while deals jumped, implying much smaller average trade size. Volume traded declined by 48.15 per cent to 517.23 million units from 997.56 million units, while value dropped 44.67 per cent to N47.48 billion from N85.81 billion. Deals jumped 42.60 per cent to 53,932 from 37,821, with average trade size falling to about N0.88 million per deal versus N2.27 million in the previous session.

Market breadth weakened significantly, with 42 losers against 21 gainers. Consolidated Hallmark Insurance led the gainers chart by 10 per cent to close at N7.15, per share.

Livestock Feeds followed by a gain of 9.77 per cent toclise at N14.60, while AXA Mansard Insurance rose by 9.30 per cent to close at N11.75, per share.

UPDC up by 7.46 per cent to close at N3.60 and NPF Microfinance Bank increased by 7.14 per cent to close at N4.50, per share.

On the other side, Champion Breweries and Uni Assurance led the losers chart by 10.00 per cent each to close at N8.10 and N2.70 respectively, while Aradel Holdings followed with a loss of 9.99 per cent to close N1,296.00, per share.

Vitafoam down by 9.97 per cent to N157.20 and Cornerstone Insurance down 9.89 per cent to N4.10.

On market outlook, United Capital Plc said, “Nigeria’s equity market is expected to sustain positive momentum this week, supported by improved investor sentiment and bargain-hunting across fundamentally strong stocks. Investors are likely to monitor corporate earnings releases, dividend announcements and portfolio repositioning for further market direction.

“However, profit-taking in large-cap stocks and continued volatility across banking equities could limit broader market gains. Recent trading has highlighted selective buying interest, despite pressure on market breadth.

“We expect investors to favour stocks with strong earnings prospects, attractive dividend yields and sound fundamentals, while monitoring developments in the fixed-income market. Lower yields could further improve the relative appeal of equities.”