Investors lose N650bn as NGX extends decline

Investors on the Nigerian Exchange Limited (NGX) lost N650 billion on Wednesday as renewed sell-offs in banking and industrial stocks dragged the equities market lower, extending the bearish sentiment witnessed in recent sessions.

Market capitalisation declined by 0.41 per cent to N159.34 trillion from N159.99 trillion, wiping N650 billion off investors’ portfolios, while the All-Share Index (ASI) shed 1,004.38 points, or 0.41 per cent, to close at 246,980.17 points, down from 247,984.55 points recorded in the previous session.

Despite the decline, the market maintained a robust year-to-date return of 58.71 per cent, albeit lower than the 59.36 per cent recorded previously.

The downturn was driven by losses in Sterling Financial Holdings Company Plc, which fell 6.83 per cent, FCMB Group Plc, which declined 4.66 per cent, and HBM Nigeria Plc, formerly Lafarge Africa, which dropped 3.80 per cent despite recently reporting a 57 per cent increase in half-year profit.

These losses outweighed gains recorded by LASACO Assurance Plc, which appreciated by 10.00 per cent, NEM Insurance Plc, up 9.97 per cent, and SUNU Assurances Nigeria Plc, which gained 9.83 per cent.

Trading activity was mixed during the session as the volume of shares traded rose 12.11 per cent to 758.87 million units, while the value of transactions declined 7.23 per cent to N33.79 billion.

FCMB Group Plc emerged as the most actively traded stock by volume with 92.44 million shares, while First HoldCo Plc led the value chart with transactions worth N8.77 billion.

Market breadth weakened considerably to 0.53x, reflecting a bearish undertone as 23 stocks advanced against 43 decliners.

On the gainers’ chart, LASACO Assurance Plc led with a 10.00 per cent appreciation, while Cornerstone Insurance Plc and Legend Internet Plc topped the losers’ table after each shedding 10.00 per cent.

Meanwhile, the NASD Over-the-Counter (OTC) market closed on a positive note as the NASD Security Index (NSI) advanced 1.21 per cent to 4,324.88 points.

Market capitalisation also increased by 1.21 per cent to N2.60 trillion, lifting the market’s year-to-date return to 22.04 per cent, from 20.58 per cent.

However, trading activity weakened sharply on the NASD platform, with transaction volume plunging 96.79 per cent to 213,893 units, while the value of trades declined 82.70 per cent to N14.84 million across 44 deals.

The positive performance in the OTC market was driven solely by SDMRS, which gained 9.09 per cent, while no stock recorded a decline during the session.