NGX Sheds N137bn On Renewed Sell-offs, Negative Sentiment

The Nigerian equities market opened the week on a bearish note, as renewed sell-offs and negative investor sentiment pushed market capitalisation down by N137 billion.

The All-Share Index (ASI) declined by 265.99 points, representing a 0.11 per cent loss, to close at 239,085.17 points. Consequently, market capitalisation fell from its previous level to N154.397 trillion.

The decline was driven largely by price depreciation in several large- and medium-capitalised stocks, including First Holdco, Fidelity Bank, Ikeja Hotel, The Initiates Plc (TIP) and Neimeth International Pharmaceuticals.

Market sentiment remained negative, with 32 stocks recording losses compared with 18 gainers.

International Energy Insurance led the losers’ chart, declining by 9.82 per cent to close at N3.49 per share. Neimeth International Pharmaceuticals followed with a 9.38 per cent loss to close at N7.25, while Fidelity Bank shed 6.00 per cent to close at N18.80 per share.

Guinea Insurance depreciated by 5.19 per cent to close at 73 kobo, while NPF Microfinance Bank declined by 4.82 per cent to close at N3.95 per share.

On the gainers’ side, Red Star Express emerged as the best-performing stock, appreciating by 9.86 per cent to close at N16.15 per share.

University Press gained 9.38 per cent to close at N5.25, while UPDC rose by 5.97 per cent to N3.55 per share. Haldane McCall increased by 3.90 per cent to close at N4.00, while Sunu Assurance appreciated by 3.33 per cent to N3.10 per share.

Commenting on the outlook for the week, United Capital Plc said the equities market was expected to remain fairly stable despite recent profit-taking following strong gains recorded earlier in the year.

“The Nigerian equities market should remain fairly stable this week, despite recent profit-taking following the strong gains recorded earlier in the year,” the investment firm stated.

According to United Capital, the NGX All-Share Index remains significantly higher year-to-date, sustaining investor interest despite the recent pullback.

It said investors were likely to maintain focus on companies with strong earnings, attractive valuations and good dividend prospects.

However, it noted that continued profit-taking could limit market gains and keep trading cautious in the near term.

The firm added that stable naira conditions and improved investor confidence could provide additional support for the market, while upcoming corporate earnings reports were expected to influence stock-specific performance.

Despite the decline in market value, trading activity strengthened significantly during the session.

Total volume traded rose by 60.5 per cent to 668.72 million shares, valued at N23.83 billion and exchanged in 45,894 deals.

Fortis Global Insurance accounted for the highest volume of trades, with 205.336 million shares worth N412.925 million changing hands.

United Bank for Africa (UBA) followed with 81.334 million shares valued at N3.603 billion, while First Holdco recorded 40.414 million shares worth N5.174 billion.

FCMB Group traded 21.055 million shares valued at N238.692 million, while Access Holdings recorded 17.867 million shares worth N484.184 million.

The session therefore reflected a cautious market environment, with increased trading activity failing to offset the impact of renewed sell-offs and broad-based declines among key stocks.