Bears Tighten Grip On NGX As Market Cap Falls To N159.3trn

Bearish sentiment returned to the Nigerian Exchange (NGX) on Wednesday as sustained profit-taking in major stocks erased N648 billion from investors’ wealth, dragging the market capitalisation down to N159.345 trillion.

The downturn wiped out the previous session’s gains, with the All-Share Index (ASI) shedding 1,004.38 points, or 0.41 per cent, to close at 246,980.17 points, while market capitalisation declined from N159.993 trillion to N159.345 trillion.

The sell-off was driven largely by losses in heavyweight and medium-cap stocks, including HBM Nigeria Plc, Dangote Sugar Refinery, The Initiates Plc (TIP), Guaranty Trust Holding Company (GTCO) and Zenith Bank.

Despite the negative close, analysts at Cowry Assets Management Limited said the market could rebound in subsequent sessions, noting that relatively modest declines across most sectors suggest improving resilience.

However, they warned that continued profit-taking in recently appreciated stocks may limit the pace of recovery.

Market breadth remained weak, with 45 stocks declining against 23 gainers, reflecting negative investor sentiment.

On the gainers’ chart, Lasaco Assurance led with a 10 per cent appreciation to close at N2.42 per share. NEM Insurance followed with a 9.97 per cent gain to N34.20, while Sunu Assurance and Prestige Assurance each rose by 9.83 per cent to close at N3.91 apiece. Consolidated Hallmark Holdings also advanced by 6.52 per cent to settle at N8.00 per share.

Conversely, Cornerstone Insurance and Legend Internet topped the losers’ table after shedding 10 per cent each to close at N5.40 and N4.05, respectively. The Initiates Plc (TIP) lost 9.91 per cent to close at N30.00, while Guinea Insurance dropped 9.78 per cent to 83 kobo. ABC Transport also declined by 9.45 per cent, closing at N5.75 per share.

Trading activity remained robust, with total transaction volume rising 12.1 per cent to 758.87 million shares valued at N33.79 billion, exchanged in 55,251 deals.

FCMB Group emerged as the most actively traded stock with 92.44 million shares worth N1.10 billion. It was followed by First Holdco with 71.12 million shares valued at N876.59 million, while Access Holdings traded 43.25 million shares worth N1.17 billion.

Other actively traded stocks included Sterling Financial Holdings Company, which recorded 35.81 million shares valued at N285.15 million, and Zenith Bank, which traded 31.03 million shares worth N3.88 billion.