NGX Begins July On Weak Note As Market Capitalisation Falls By N2.39trn

The Nigerian Exchange (NGX) opened trading for the month of July on a weak note as sustained sell-offs triggered a sharp decline in equity prices, wiping N2.393 trillion off investors’ wealth.

The market capitalisation fell from N147.218 trillion to N144.825 trillion, while the All-Share Index (ASI) shed 3,729.11 points, or 1.63 per cent, to close at 225,690.07 points.

The downturn was driven by price losses in several large and medium-capitalised stocks, including Aradel Holdings, Dangote Cement, NASCON Allied Industries, Zenith Bank and Guaranty Trust Holding Company (GTCO), reflecting continued profit-taking by investors.

Commenting on the market performance, APT Securities & Funds Limited said the trading session was dominated by bearish sentiment and weaker market activity.

“Overall, the session was characterised by bearish sentiment and weaker trading activity, as selling pressure drove the market lower,” the firm stated.

Looking ahead, Cowry Assets Management Limited projected that the bearish trend could persist in the near term due to ongoing profit-taking. However, it noted that strategic investor repositioning may help reverse the trend in subsequent trading sessions.

Market breadth remained negative, with 33 decliners outweighing 28 gainers.

Austin Laz & Company topped the gainers’ chart with a 10 per cent appreciation to close at N3.30 per share. Guinea Insurance rose by 9.89 per cent to N1.00, while Abbey Mortgage Bank advanced 9.66 per cent to N7.95 per share.

Daar Communications gained 9.60 per cent to close at N1.37, while Regency Alliance Insurance appreciated by 9.52 per cent to settle at 92 kobo per share.

On the losers’ table, McNichols, Neimeth International Pharmaceuticals and Aradel Holdings each declined by 10 per cent to close at N7.65, N8.10 and N1,275.80 per share, respectively.

NASCON Allied Industries followed with a 9.98 per cent loss to close at N197.60, while International Breweries dropped 9.52 per cent to N9.50 per share.

Trading activity also weakened significantly, with total volume traded declining by 54.7 per cent to 437.60 million shares valued at N12.73 billion in 45,068 deals.

Sterling Financial Holdings Company led the activity chart with 124.618 million shares worth N980.635 million. UPDC followed with 40.091 million shares valued at N130.365 million, while Access Holdings traded 36.844 million shares worth N811.552 million.

Honeywell Flour Mills recorded 33.775 million shares valued at N490.085 million, while United Capital exchanged 28.347 million shares worth N469.144 million.