Equities Market Sheds N56bn Amidst Banking, Oil Stock Sell-offs

Samuel Mobolaji

Investors in the Nigerian equities market faced a significant loss of over N56 billion as a wave of sell-offs swept through banking, insurance, and oil stocks.

The Nigerian Exchange (NGX) closed on a negative note as traders rebalanced their portfolios in anticipation of the upcoming third-quarter earnings reports.

According to transaction records from NGX, the market’s key performance indicators fell by 0.10 per cent, further moderating year-to-date gains after the previous day’s losses. The All-Share Index dropped by 97.67 basis points, closing at 97,487.14 points.

The downturn was primarily driven by profit-taking across major market sectors, with the banking sector leading the decline, down 0.67 per cent. Over just two days, the local bourse has lost approximately N126 billion as investors shifted their focus toward fixed interest securities.

Market activity saw a decline, with total volume and value traded falling by 50.48 per cent and 16.65 per cent, respectively. In a report from Atlass Portfolios Limited, about 356.13 million units valued at N6.95 billion were exchanged across 8,582 deals.

Fidelity Bank (FIDELITYBK) emerged as the most traded stock by volume, accounting for 18.61 per cent of the total trades, followed by UBA (United Bank for Africa) at 10.68 per cent and Sterling Bank (STERLINGNG) at 9.49 per cent. In value terms, UBA led with 14.87 per cent of the total market value.

Despite the overall market decline, LASACO topped the advancers’ chart with a 10 per cent price appreciation, alongside other gainers such as MECURE (+9.47 per cent), JBERGER (+9.33 per cent), and REGALINS (+9.09 per cent). Conversely, ELLAHLAKES recorded the largest loss, dropping 9.84 per cent, followed by ETRENA (-8.52 per cent) and LIVESTOCK (-8.02 per cent).

The market breadth closed negative, with 15 gainers compared to 38 losers. According to CardinalStone Securities Limited, sector performances were predominantly bearish, with four indices closing in the red and only one in the green.

The banking sector was notably affected, led by declines in UBA (-1.82 per cent) and FBN Holdings (FBNH) at -1.73 per cent. The oil and gas sector also faced pressure, largely due to losses in OANDO (-3.45 per cent). Other sectors, such as insurance and industrial goods, also saw slight declines.

In contrast, the consumer goods sector saw a modest gain of 0.31 per cent, buoyed by positive sentiment in Nigerian Breweries (NB), which rose by 5.26 per cent.

Overall, the Nigerian Exchange recorded a total loss of N56.12 billion, closing at N56.02 trillion.